Political action committee makes first move
A crypto-focused super political action committee called Fellowship has made its first expenditure, according to federal records. The group spent $300,000 on advertising through a company called Nxum Group. That firm happens to be co-founded by Bo Hines, who is now the chief executive officer of Tether US.
This is interesting timing. The PAC only recently became active again this month after naming Jesse Spiro as its chairman. Spiro works as vice president of regulatory affairs for Tether’s U.S. arm. So there’s a clear connection here, though Tether International says it has no affiliation or oversight over the PAC.
The payment arrangement
What’s notable about this transaction is that Fellowship PAC paid money to a company connected to its own chairman’s boss. Bo Hines helped found Nxum Group with his father and another partner. Hines previously served as a White House crypto adviser before joining Tether.
Now, setting up a super PAC and paying yourself for services isn’t actually against U.S. campaign finance rules. Michael Beckel from political reform organization Issue One explained this to me. “There is no blanket prohibition on self-dealing when we’re talking about political committees like this,” he said. The key requirement is that services must be provided at fair market value.
Still, it raises questions. Fellowship had advertised itself as being “rooted in transparency” when it launched last year. The PAC hasn’t responded to questions about its formation, funding, or this particular payment.
Where the money went
The $300,000 went toward advertising for Georgia Republican Clay Fuller, who just won a special election to replace Marjorie Taylor Greene. Fuller will still need campaign support for upcoming primary and general elections in Georgia.
What’s curious is that Fuller hasn’t broadcast any particular position on cryptocurrency. He doesn’t have a grade at Stand With Crypto, which evaluates candidates’ views on digital assets. He does have Donald Trump’s backing though—the former president called him “a wonderful and talented man” on Truth Social.
The bigger picture
Fellowship PAC announced last year that it would be established with pledges of $100 million. But its current federal disclosures show accounts at zero. That doesn’t necessarily mean the money isn’t there—federal filings often trail behind actual money movements.
If the PAC does have substantial funding, it would be entering a crowded field. The leading crypto super PAC, Fairshake, has already spent millions in early election contests. Fellowship’s $300,000 expenditure is relatively small by comparison.
What’s also interesting is Fellowship’s focus so far. The PAC is backing only Republican candidates, almost all in deep-red regions. This could be a strategic choice, or perhaps it reflects the political leanings of its backers.
What comes next
It’s not too late for Fellowship to make an impact. The U.S. midterm elections are well underway, but there are still important races ahead. If Democrats take control of the House—currently an 87% chance according to Polymarket betting—the crypto industry will need friends on both sides of the aisle.
Tether US’s stablecoin, USAT, has a market cap of about $37 million. That suggests the firm might not have independent resources to fund a major PAC on its own. But perhaps other backers are involved.
“Occasionally, those types of super PAC threats are paper tigers that never materialize,” Beckel noted. “But we’re seeing in this day and age that massive spending by an industry is something that lawmakers are taking seriously.”
We’ll need to watch for future disclosures to see where Fellowship’s money comes from and where it goes. The first transaction has certainly raised eyebrows, given the connections between the PAC, the payment recipient, and Tether leadership.
