A recently formed cryptocurrency industry political action committee, known as Fellowship PAC, has initiated its operations with an $11 million backing and has allocated $3 million for advertising services through a firm co-founded by the CEO of Tether US, Bo Hines. The super PAC is primarily focusing its support on Republican candidates competing for Congressional and gubernatorial positions. According to filings with the Federal Election Commission, the PAC has gathered $10 million from Cantor Fitzgerald and $1 million from the cryptocurrency bank Anchorage Digital.
The initial $3 million expenditure on political advertising for favored candidates has been directed to Nxum Group, a company established by Hines, his father, and another partner. While Fellowship PAC has been associated with Tether since its inception, the majority of its funding originated from Cantor Fitzgerald, a New York-based financial services giant that handles the reserves for Tether's stablecoin business. A representative of Tether US did not immediately respond to a request for comment, and a Cantor spokesperson declined to comment on their involvement with the super PAC. The PAC has devoted $300,000 to support Clay Fuller, $850,000 to back Nate Morris, and $350,000 to support Pete Ricketts, according to Federal Election Commission filings.
Nxum Group has received $3 million in disbursements for advertising services, despite not having a significant track record in serving PACs or campaigns prior to this. Anchorage Digital has described its contribution as an investment in the U.S. crypto policy process, emphasizing its commitment to advancing regulatory clarity for digital assets in a bipartisan manner.