A newly formed political action committee, The Fellowship PAC, has made its first major expenditure, spending $300,000 on advertising for a Republican candidate in Georgia through a firm co-founded by Tether's US CEO, Bo Hines. The PAC, which claims to be committed to transparency, has been linked to Tether and has named a Tether executive as its chairman.

The advertising effort is aimed at supporting Republican candidates who back the development of digital assets. The move has raised questions about potential self-dealing, as the firm paid by the PAC has ties to Tether's US CEO. According to campaign finance rules, self-dealing is not prohibited as long as services are provided at fair market value.

The Fellowship PAC's first financial disclosure shows that it has spent money on advertising for a Republican candidate, but its current accounts remain at zero, despite earlier announcements that it would be established with pledges of $100 million. An outside spokesperson for Tether has denied any affiliation or oversight of the PAC, while a representative for the PAC has not responded to questions about its activities.

The PAC's first recipient of financial support is a Republican candidate who has not publicly stated his position on crypto. The firm paid by the PAC, Nxum Group, was co-founded by Bo Hines, who previously worked as a White House official and helped advance crypto legislative efforts. It is unclear whether Hines still has financial ties to the firm. The PAC's treasurer is an executive at Cantor Fitzgerald, which manages assets for Tether's global operation.

The Fellowship PAC was announced last year as a new effort aimed at supporting the broader crypto ecosystem, with a focus on transparency and trust. However, its activities have raised questions about its commitment to these values. The PAC's spending is still a relatively small amount compared to other crypto super PACs, but it may still have an impact on the upcoming congressional elections.

The crypto industry is likely to need support from both parties, given the potential shift in the balance of power in Congress.