A newly formed political action committee, the Fellowship PAC, has made its first expenditure, spending $300,000 on advertising for Georgia Republican Clay Fuller through Nxum Group, a firm co-founded by Bo Hines, who now serves as the chief executive of Tether's US arm. This move marks the PAC's initial foray into the US midterm elections, with the advertisement purchase being made on behalf of Fuller's primary election effort. 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 of the political reform organization Issue One, setting up a super PAC and paying oneself for services is not against US campaign-finance rules, as long as the services are provided at fair market value.
The PAC's advertising effort on behalf of Fuller is not yet clear, apart from the disclosure that money was given to the advertisement provider for his primary election effort. The funds changed hands just as Fuller was winning his special election. Despite an announcement last year that the PAC would be established with pledges of $100 million, its current accounts still show zero, and it has not yet demonstrated a stockpile of contributions to back other candidates.
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 will begin actively supporting candidates aligned with its vision of fostering economic growth and reinforcing the US as the global leader in next-generation financial infrastructure. The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives, and the money spent by the Fellowship super PAC was an independent expenditure.
As a candidate, Fuller has not broadcast a position on crypto and does not have a grade at Stand With Crypto, an advocacy group that evaluates candidates' views. 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. There is no federal record for Nxum as a regular service provider for additional political efforts. 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 as a new PAC last year, it was presented as a contrast from previous political engagement, with a focus on transparency and trust. It is possible that some or all of the promised $100 million is in the PAC's coffers already, because federal disclosures typically trail significantly behind the movements of money. The relatively young Tether US's stablecoin, USAT, has a market cap of about $37 million, suggesting the firm may not have the independent resources yet to fund a major PAC. The rival crypto super PAC, Fairshake, has expended millions in the early contests, and the Fellowship PAC's spending is still a drop in the bucket compared to Fairshake's receipts.