A newly formed cryptocurrency political action committee, Fellowship PAC, has launched with substantial funding of $11 million and has already allocated $3 million for advertising services through Nxum Group, a company co-founded by Tether US CEO Bo Hines. The super PAC is primarily supporting Republican candidates in congressional and gubernatorial races, with $10 million in funding provided by Cantor Fitzgerald and $1 million by Anchorage Digital, as disclosed in Federal Election Commission filings. The initial advertising expenditure has been channeled through Nxum Group, which was founded by Hines and his associates.
Although Fellowship PAC has been associated with Tether since its inception, the majority of its funding originates from Cantor Fitzgerald, a prominent financial services firm that handles Tether's stablecoin reserves. A representative from Tether US was unavailable for comment, while a Cantor spokesperson declined to discuss their involvement with the super PAC. Fellowship PAC's treasurer is an executive at Cantor, and the PAC has so far committed $300,000 to support Clay Fuller, $850,000 to back Nate Morris, and $350,000 to support Senator Pete Ricketts, according to federal filings.
Nxum Group has received $3 million in disbursements for advertising services, marking a significant engagement for the company. The formation of Fellowship PAC was announced last year with a pledged backing of $100 million, aiming to promote transparency and support pro-crypto candidates. Anchorage Digital, a crypto-native bank, views its contribution as an investment in the US crypto policy process, emphasizing its commitment to advancing regulatory clarity for digital assets.
The involvement of Tether executives in Fellowship PAC's activities raises questions about the potential for direct contributions from Tether or its US arm, given the restrictions on non-US entities participating in US campaign finances.