A recently launched cryptocurrency industry political action committee, known as Fellowship PAC, has begun its operations with a substantial $11 million in funding. The committee has already allocated $3 million for advertising services through a company co-founded by Bo Hines, the CEO of Tether US.
The super PAC is primarily supporting Republican candidates in congressional and gubernatorial elections, with its initial funding coming from Cantor Fitzgerald and Anchorage Digital, according to recent Federal Election Commission filings. The $3 million spent on advertising has been channeled through Nxum Group, a company founded by Hines, his father, and another partner. Although 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 Tether's stablecoin reserves. Cantor's former CEO, Howard Lutnick, now serves as the US Commerce Secretary, and his children have taken over the business.
A representative from Tether US did not immediately respond to requests for comment, and a Cantor spokesperson declined to comment on their involvement with the super PAC. Initially, Fellowship PAC announced it would have $100 million at its disposal, a amount rivaling the leading crypto PAC, Fairshake. The committee's treasurer is an executive at Cantor.
The PAC has allocated $300,000 to support Clay Fuller, a new member of the US House of Representatives; $850,000 to back Nate Morris for a US Senate seat in Kentucky; and $350,000 to support incumbent Nebraska Senator Pete Ricketts, according to Federal Election Commission filings. Nxum Group has received $3 million in disbursements for advertising services, despite having a limited track record in serving PACs or campaigns prior to this. When Fellowship PAC was first announced, it pledged to champion transparency while supporting pro-crypto candidates, although this level of backing has yet to materialize. Anchorage Digital, the first crypto-native bank to receive a US federal charter, views its contribution as an investment in the US crypto policy process, stating that it is part of their broader approach to advancing regulatory clarity for digital assets in the United States.