A recently launched cryptocurrency industry political action committee, Fellowship PAC, has initiated its operations with a substantial $11 million in financial backing. Notably, it has already reserved $3 million in advertising services through Nxum Group, a firm co-founded by Bo Hines, the CEO of Tether US. The super PAC is primarily focusing its support on Republican candidates competing for congressional and gubernatorial positions.
According to filings with the Federal Election Commission, the committee has amassed $10 million from Cantor Fitzgerald and $1 million from Anchorage Digital, a cryptocurrency bank. The initial $3 million expenditure on political advertisements for its preferred candidates has been channeled to Nxum Group, which was established by Hines, his father, and another partner. Although Fellowship PAC has been closely tied to Tether since its inception and features a senior Tether executive as its chairman, the majority of its funding originates from Cantor Fitzgerald, a New York-based financial services giant that manages the reserves for Tether's stablecoin business. A representative from Tether US did not immediately respond to a request for comment, while a Cantor spokesperson declined to discuss their involvement with the super PAC.
Upon its public debut, Fellowship PAC announced its intention to wield $100 million, rivaling the prominent crypto PAC, Fairshake. The committee's treasurer is an executive at Cantor. To date, the PAC has allocated $300,000 to support Clay Fuller, the newest member of the U.S. House of Representatives; $850,000 to back Nate Morris for a U.S.
Senate seat in Kentucky; and $350,000 to support incumbent Nebraska Senator Pete Ricketts, as per filings with the Federal Election Commission. The filings reveal that Nxum has received $3 million in disbursements for advertising services.
Prior to this, Nxum lacked a significant track record in serving PACs or campaigns, with its primary claim to fame being a $1 million donation of billboard ads to MAGA Inc. in 2024, shortly before Hines assumed a high-profile role at the White House.
Upon its formation, Fellowship PAC stated it had $100 million in pledged backing and would advocate for transparency while supporting pro-crypto candidates. However, this level of backing has yet to materialize.
Anchorage Digital, the first crypto-native bank to receive a U.S. federal charter, characterized its contribution as an investment in the U.S. crypto policy process.
In a statement, the company expressed its commitment to advancing regulatory clarity for digital assets in the United States through a bipartisan approach. Despite the involvement of Tether executives in Fellowship PAC's activities, it remains unclear whether Tether or its U.S. arm, Tether US, can make direct contributions to the PAC, as non-U.S.
entities are prohibited from directly participating in U.S. campaign finances.