A new political action committee, the Fellowship PAC, has made its first financial expenditure, spending $300,000 on advertising for a Republican candidate through a firm linked to Tether's US CEO, Bo Hines. The PAC, which claims to be 'rooted in transparency,' has ties to Tether, although the company has not confirmed the connection. The expenditure was made to Nxum Group, a company co-founded by Hines, who is also a former adviser to President Donald Trump. The PAC's first financial backing went to Republican candidate Clay Fuller, who recently won a special election.
The Fellowship PAC has not responded to questions about its formation, funding, or the payment that may benefit Tether's US CEO and his relative. According to campaign finance rules, setting up a super PAC and paying for services is not prohibited as long as the services are provided at fair market value.
The PAC's disclosures do not show a significant stockpile of contributions to back other candidates, despite an announcement last year that it would be established with pledges of $100 million. An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over the Fellowship PAC. The PAC became active again this month when it announced its chairman would be Jesse Spiro, the vice president of regulatory affairs for Tether's US arm. The Fellowship PAC says it will support candidates who recognize the importance of emerging digital assets technology and fostering economic growth.
The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives. The money spent by the Fellowship super PAC was an independent expenditure, meaning it had to be handled without strategizing with Fuller's campaign. The firm paid by the Fellowship PAC, Nxum, included Bo Hines among its owners when he filed ethics disclosures last year as a White House official.
It is unclear whether financial ties remain between Hines and Nxum. 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 last year, it was presented as a contrast to previous political engagement, aiming to help the broader crypto ecosystem and not 'narrow or individual interests.' The PAC's disclosures will identify the origins of the money, which must be from US sources. The US midterm elections are already underway, with many of the hotly contested primaries already past or about to happen.
Fairshake, a leading crypto super PAC, has expended millions in the early contests. If the US House is taken over by a Democratic majority, the committees there will likely shift their agenda to challenge Trump's legislative efforts and investigate the administration's actions.