A recently established crypto-focused political action committee, the Fellowship PAC, has disclosed its first financial expenditure, with $300,000 allocated to advertising for a Republican congressional candidate through a firm tied to Tether's US CEO. This development marks the PAC's inaugural foray into the 2026 US midterm elections. The Fellowship PAC, reportedly linked to Tether, has been characterized as a crypto campaign-finance powerhouse, although it had yet to participate in the elections until the recent federal disclosure. The PAC's chairman, Jesse Spiro, is a Tether US executive, while the advertising expenditure was made through Nxum Group, a company co-founded by Bo Hines, who serves as the CEO of Tether's US arm and previously advised President Donald Trump on crypto matters.
The payment may potentially benefit Hines and his relative, as Nxum Group was co-founded by Hines and his father, Todd Hines. According to Michael Beckel, an expert at the political reform organization Issue One, setting up a super PAC and paying for services is permissible under US campaign-finance rules, provided that the services are rendered at fair-market rates.
The Fellowship PAC's advertising effort is in support of Georgia Republican Clay Fuller, who recently won a special election. However, the PAC's disclosures do not indicate a substantial stockpile of contributions to support other candidates, with its current accounts showing no balance, despite an earlier announcement that it would be established with $100 million in pledges. An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over the Fellowship PAC, while deferring further inquiries to the PAC, which did not respond to questions.
The Fellowship PAC has begun listing endorsements for Republican politicians on its social media feed, stating that it will support candidates who advocate for emerging digital assets technology. The PAC's first financial support recipient, Fuller, is an incoming Republican member of the House of Representatives, who will require campaign support for the upcoming primary and general elections.
As a candidate, Fuller has not publicly expressed his views on crypto, but has received backing from Trump. The firm paid by the Fellowship PAC, Nxum Group, was co-founded by Bo Hines, who later became the executive director of the President's Council of Advisers on Digital Assets. After less than a year in this role, Hines joined Tether as the CEO of its US arm. The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation.
When the Fellowship PAC was announced, it was presented as a transparent and trustworthy entity, aimed at supporting the broader crypto ecosystem, rather than individual interests. The PAC's relatively modest expenditure so far may be a precursor to more significant spending, as federal disclosures often lag behind the actual movement of funds. The Tether US stablecoin, USAT, has a market capitalization of approximately $37 million, suggesting that the firm may not have the independent resources to fund a major PAC.
According to Beckel, the Fellowship PAC's spending may be a 'paper tiger' that fails to materialize, but lawmakers are taking notice of the crypto industry's significant spending. The rival Fairshake crypto super PAC has expended millions in the early contests, while the Fellowship PAC has focused its support on Republicans, primarily in deep-red regions.