A recently launched cryptocurrency industry political action committee, known as Fellowship PAC, has commenced operations with an $11 million budget and has already reserved $3 million in advertising services through Nxum Group, a company co-founded by Tether US CEO Bo Hines. According to filings released by the Federal Election Commission, the super PAC has garnered $10 million from Cantor Fitzgerald and $1 million from Anchorage Digital, a crypto bank. The initial $3 million expenditure on political advertising for supported candidates has been allocated to Nxum Group, which was founded by Hines, his father, and another partner.
Although Fellowship PAC has been associated with Tether since its inception and has a senior Tether executive as its chairman, the majority of its funding originated from Cantor Fitzgerald, a New York-based financial services giant that handles Tether's stablecoin business reserves. A representative from 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. When Fellowship PAC was first announced, it stated that it would have $100 million at its disposal, rivaling the prominent crypto PAC, Fairshake.
The PAC's treasurer is an executive at Cantor. To date, the PAC has allocated $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 stated that it had $100 million in pledged backing and would advocate for transparency while supporting pro-crypto candidates.
However, this level of funding has yet to materialize. Anchorage Digital described its contribution as an investment in the U.S. crypto policy process, stating that it has made a corporate contribution to the Fellowship PAC as part of its bipartisan approach to advancing regulatory clarity for digital assets in the United States. The company's involvement in the Fellowship PAC has raised questions about the potential for direct contributions from Tether or its U.S.
arm, Tether US, given that non-U.S. entities are not allowed to participate directly in U.S.
campaign finances.