A newly formed super PAC, The Fellowship, has disclosed its first financial contribution, allocating $300,000 to Nxum Group, a firm co-founded by Bo Hines, who currently serves as the chief executive of Tether's US operations and previously advised President Donald Trump. The Fellowship PAC has been linked to Tether, although the company has not publicly confirmed this connection. The PAC's first expenditure was made to support Georgia Republican Clay Fuller through Nxum Group, with the funds being used for advertising purposes.
According to Michael Beckel, an expert at Issue One, a political reform organization, 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 on behalf of Fuller is not yet clear, but the funds were allocated during his special election campaign. The PAC's current accounts show no contributions, despite an initial announcement 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 Fellowship PAC, and the representative did not respond to further questions about Tether US. The PAC became active again this month, announcing its chairman as Jesse Spiro, the vice president of regulatory affairs for Tether's US arm. The Fellowship PAC aims to support candidates who advocate for emerging digital assets technology and has begun listing endorsements for Republican politicians on its social media feed. 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.
The firm paid by Fellowship PAC, Nxum, was co-founded by Bo Hines, who previously worked as a White House official and helped push crypto legislative advances. There is no federal record of Nxum as a regular service provider for additional political efforts, but the company did contribute billboard advertising valued at $1 million for MAGA Inc.
in support of Trump in 2024. The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation. When Fellowship was announced as a new PAC last year, it was presented as a contrast from previous political engagement, aiming to help the broader crypto ecosystem and not narrow or individual interests.
It is possible that some or all of the promised $100 million is in the PAC's coffers already, but federal disclosures typically trail 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. According to Beckel, massive spending by an industry is something that lawmakers are taking seriously, and the crypto industry may need a lot of friends from both parties.
The U.S. midterm elections are already underway, with many of the hotly contested primaries already past or about to happen, and Fairshake, a rival crypto super PAC, has expended millions in the early contests.