A newly established crypto-focused political action committee, the Fellowship PAC, has disclosed its first financial contribution ahead of the 2026 US congressional midterm elections. The PAC, which has been linked to Tether, spent $300,000 on advertising for Republican candidate Clay Fuller through Nxum Group, a firm co-founded by Bo Hines, who currently serves as the CEO of Tether's US operation and previously advised President Donald Trump. The Fellowship PAC, which claims to be rooted in transparency, has not responded to inquiries about its formation, funding, or the payment that may benefit Tether's US CEO and his relative. According to Michael Beckel, an expert at the political reform organization Issue One, setting up a super PAC and paying for services is not against US campaign finance rules as long as the services are provided at fair market value.

The Fellowship PAC's advertising effort for Fuller is its first reported expense, and it is unclear what specific services Nxum Group provided. The PAC's current accounts show no stockpile of contributions to support other candidates, 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 a representative for Tether US did not respond to further questions. The Fellowship PAC recently announced its chairman would be Jesse Spiro, the vice president of regulatory affairs for Tether's US arm, and began listing endorsements for Republican politicians on its social media feed. The PAC claims it will support candidates who advocate for the development of digital assets technology. The first recipient of the Fellowship PAC's financial support, Clay Fuller, is an incoming Republican member of the House of Representatives who won a special election and will require campaign support for the upcoming primary and general election.

The money spent by the Fellowship super PAC was an independent expenditure, meaning it was handled without strategizing with Fuller's campaign. As a candidate, Fuller has not publicly stated his position on crypto, but he has the backing of President Donald Trump. The firm paid by the Fellowship PAC, Nxum Group, was co-founded by Bo Hines, who filed ethics disclosures last year as a White House official and worked as a leading adviser on crypto legislative advances. It is unclear whether Hines still has financial ties to Nxum Group.

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 efforts, with a focus on transparency and trust. However, the PAC's current activities have raised questions about its funding and potential conflicts of interest.

The US midterm elections are already underway, with many hotly contested primaries taking place. The leading crypto super PAC, Fairshake, has expended millions in the early contests, while the Fellowship PAC's spending so far is relatively small.

If the US House is taken over by a Democratic majority, the committees may shift their agenda to challenge Trump's legislative efforts and investigate the administration's actions. The crypto industry may need to build relationships with lawmakers from both parties to advance its interests.