A newly formed crypto-focused political action committee, The Fellowship PAC, has made its inaugural expenditure, allocating $300,000 towards advertising for Georgia Republican Clay Fuller through Nxum Group, a firm co-founded by Bo Hines, who currently serves as the chief executive of Tether's US operations and previously advised President Donald Trump. This development marks the PAC's first recorded expense, as disclosed to the Federal Election Commission. The Fellowship PAC had earlier announced its formation, positioning itself as a significant player in crypto campaign finance, although it had not participated in the US midterm elections until now. The PAC's connection to Tether was reportedly established from its inception, but the company has declined to confirm this affiliation.
Recently, the PAC appointed Jesse Spiro, an executive from Tether's US arm, as its chairman. The advertising effort, undertaken on behalf of House of Representatives candidate Fuller, is the PAC's first tangible action, with the details of the campaign not fully disclosed beyond the payment made to Nxum Group for Fuller's primary election bid. According to experts, setting up a super PAC and compensating oneself for services is permissible under US campaign finance rules, provided the services are rendered at fair market value.
The Fellowship PAC's current accounts still show no stockpile of contributions to support other candidates, despite initial pledges of $100 million. An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over the Fellowship PAC, while declining to comment on Tether US or respond to further inquiries. The PAC's activities have drawn attention due to its ties to Tether and its potential to influence the crypto legislative landscape, particularly as the US midterm elections progress.