The crypto industry's newly established political action committee, Fellowship PAC, has launched with an impressive $11 million in funding. Notably, it has allocated $3 million for advertising services through Nxum Group, a company co-founded by Tether US CEO Bo Hines.
The super PAC aims to support Republican candidates in congressional and gubernatorial races. According to Federal Election Commission filings, the initial funding comprises $10 million from Cantor Fitzgerald and $1 million from Anchorage Digital, a crypto bank.
The $3 million spent on political advertising has been disbursed to Nxum Group, which was founded by Hines, his father, and another partner. Although Fellowship PAC has been associated with Tether since its inception, the majority of its funding originates from Cantor Fitzgerald, a New York-based financial services giant that handles Tether's stablecoin reserves.
Cantor's former chief, Howard Lutnick, now serves as Trump's Commerce Secretary. A representative of Tether US did not immediately respond to a request for comment, while a Cantor spokesperson declined to comment on their involvement with the super PAC.
Initially, Fellowship PAC announced it would wield $100 million, rivaling the leading crypto PAC, Fairshake. The PAC's treasurer is an executive at Cantor. The committee has so far allocated $300,000 to support Clay Fuller, $850,000 to back Nate Morris for a U.S.
Senate seat in Kentucky, and $350,000 to support incumbent Nebraska Senator Pete Ricketts. Nxum Group has received $3 million in disbursements for advertising services, despite having a limited track record in serving PACs or campaigns. Anchorage Digital has described its contribution as an investment in the U.S. crypto policy process, stating it is part of their broader approach to advancing regulatory clarity for digital assets in the United States.