A recently formed cryptocurrency industry political action committee, known as Fellowship PAC, has initiated its operations with an $11 million investment and has already committed $3 million for advertising 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 elections, with $10 million in funding provided by Cantor Fitzgerald and $1 million by Anchorage Digital, a crypto bank, according to filings with the Federal Election Commission. The initial $3 million expenditure on political advertising for preferred candidates has been allocated to Nxum Group, which was established 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-based financial services giant that manages the reserves for Tether's stablecoin business.
A representative from Tether US did not immediately respond to a request for comment, while a Cantor spokesperson declined to discuss their involvement with the super PAC. Upon its public introduction, Fellowship PAC announced plans to utilize $100 million, rivaling the prominent crypto PAC Fairshake, with its treasurer being an executive at Cantor. Thus far, 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. The filings also revealed that Nxum 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 support and would advocate for transparency while backing pro-crypto candidates.
However, this level of support has yet to materialize. Anchorage Digital described its contribution as an investment in the U.S.
crypto policy process, emphasizing its commitment to advancing regulatory clarity for digital assets. The company's statement highlighted its bipartisan approach to promoting digital asset regulation in the United States. Despite the involvement of Tether executives in Fellowship PAC's activities, it remains unclear whether Tether or its U.S.
subsidiary, Tether US, can make direct contributions to the PAC, as non-U.S. entities are prohibited from directly participating in U.S. campaign finance.