A newly formed crypto industry super PAC, Fellowship PAC, has commenced operations with an $11 million funding boost, with $3 million already allocated for ad services through Nxum Group, a company founded by Tether US CEO Bo Hines. The super PAC is primarily supporting Republican candidates in congressional and gubernatorial races, having garnered $10 million from Cantor Fitzgerald and $1 million from crypto bank Anchorage Digital, according to recent Federal Election Commission filings. The initial $3 million expenditure on political advertising for preferred candidates has been channeled to Nxum Group, which was co-founded by Hines, his father, and another partner. Although Fellowship PAC has been closely associated with Tether since its inception and has a senior Tether executive as its chairman, the majority of its funding originates from Cantor Fitzgerald, a New York financial services giant that handles Tether's stablecoin business reserves.
A representative of Tether US did not immediately respond to a request for comment, while a Cantor spokesperson declined to comment on the company's involvement with the super PAC. Upon its public launch, Fellowship PAC announced it would wield $100 million, rivaling the leading crypto PAC, Fairshake.
The PAC's treasurer is an executive at Cantor. To date, the PAC has dedicated $300,000 to support Clay Fuller, the newest member of the U.S. House of Representatives; $850,000 to back Nate Morris for a U.S. Senate seat in Kentucky; and $350,000 to support incumbent Nebraska Senator Pete Ricketts, according to Federal Election Commission filings.
The filings also revealed that Nxum has received $3 million in disbursements for advertising services. Prior to this, Nxum lacked a significant track record in serving PACs or campaigns, with its primary claim to fame being a $1 million donation of billboard ads to MAGA Inc.
in 2024. Upon its formation, Fellowship PAC stated it had $100 million in pledged backing and would champion transparency while supporting pro-crypto candidates, although this level of funding has yet to materialize. Anchorage Digital, the first crypto-native bank to secure a U.S.
federal charter, characterized its contribution as an investment in the U.S. crypto policy process, stating it has adopted a bipartisan approach to advancing regulatory clarity for digital assets in the United States. The company's statement also emphasized its commitment to transparency in the U.S. crypto policy process.
Despite the involvement of Tether executives in Fellowship PAC's activities, it remains unclear whether Tether or its U.S. arm, Tether US, can make direct contributions to the PAC, as non-U.S.
entities are not permitted to engage directly in U.S. campaign finances.