A newly formed crypto-focused super PAC, The Fellowship PAC, has made its first major expenditure, spending $300,000 on an ad buy through Nxum Group, a firm co-founded by Tether US CEO Bo Hines. This development marks the PAC's entry into the US midterm elections, with the ad buy supporting Republican candidate Clay Fuller in Georgia. The move has raised questions about the connection between The Fellowship PAC and Tether, as well as potential self-dealing, given Hines' involvement with both entities. According to experts, while self-dealing is not necessarily prohibited in US campaign finance rules, services must be provided at fair market value.
The Fellowship PAC's activities and funding have been shrouded in mystery, with the PAC claiming to be rooted in transparency but declining to respond to questions about its formation, funding, and the recent ad buy. The PAC's first financial disclosure showed no stockpile of contributions, despite an earlier announcement of $100 million in pledges. An outside spokesperson for Tether has denied any affiliation or oversight of The Fellowship PAC, while a representative for the PAC has not responded to inquiries. The development comes as the US crypto industry prepares for the midterm elections, with The Fellowship PAC aiming to support candidates who advocate for emerging digital assets technology.
The PAC's endorsement list includes Republican politicians seeking House and Senate seats, as well as a candidate for governor in South Carolina. The recent ad buy has sparked interest in the PAC's activities, particularly given the connection between Hines and Nxum Group.
As the US midterm elections progress, the crypto industry is likely to face significant challenges and opportunities, with the outcome of the elections potentially shaping the future of crypto legislation.