Nearly $300 million targeted at the U.S. midterm elections, Tether executives leading the second-largest political fund in the crypto industry

In the key window of the legislative chess match, use political money to champion industry interests.

Author: Deep Tide TechFlow

Deep Tide Quick Read: Fellowship, a crypto super PAC that was founded seven months ago and claims to have raised more than $100 million but has yet to spend a single dollar, announced on Wednesday the appointment of Jesse Spiro, Tether US’s vice president of regulatory affairs, as chair. This is the first time a formal, publicly disclosed connection has been established between Tether and this PAC. Meanwhile, crypto industry heavyweight PAC Fairshake, which already commands a $193 million war chest, has its combined political funding of nearly $300 million from the two PACs aimed at the midterm elections in mid-November. But the legislative standoff in Congress over stablecoin yield remains unresolved.

The political arms race in the crypto industry is heating up.

According to a report by Cointelegraph on April 1, Fellowship PAC announced on Wednesday that Jesse Spiro, Tether US’s vice president of regulatory affairs, will serve as chair of the organization, leading its next phase of expansion, and will publish its first slate of candidate endorsements within the coming days. Fellowship is a super PAC founded in August 2025. Last September, it claimed to have raised “more than $100 million” from unnamed donors aligned with the crypto industry.

In the statement, Spiro said: “This is a critical moment for American innovation. We have an opportunity to ensure the United States continues to be a global center for builders, entrepreneurs, and technological progress. Fellowship PAC is committed to supporting leaders who understand what’s at stake and are willing to take action.”

From “denying ties” to “executive presence,” the relationship between Tether and Fellowship comes into view

Since Fellowship PAC made a high-profile debut last September, the identity of its backers has been one of the industry’s biggest mysteries.

When the PAC was formed, it did not disclose any management personnel, donors, or key employees. Early reports listed Tether as a likely supporter, but Tether International later officially denied any connection to the PAC. According to a February report by CoinDesk, a spokesperson for Tether International explicitly said, “Tether International has no affiliation with Fellowship.”

But FEC records tell a different story. Fellowship’s registered treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, which is the custodian managing tens of billions of dollars in reserves for Tether. The PAC’s registered address is in Bethesda, Maryland.

Now, a current Tether US executive has officially taken the helm as chair of the PAC—finally turning the earlier rumors into something recorded in public documents. According to BeInCrypto, this marks the first formal, public connection between Fellowship PAC and Tether’s official entities.

Spiro joined Tether in 2024 as head of government affairs. Previously, he handled regulatory relationships for blockchain and digital assets at PayPal. Earlier still, he served as a government affairs leader at the on-chain analytics firm Chainalysis.

A “$100 million ammunition stockpile” with zero shots fired so far, according to FEC records showing no spending

Despite Fellowship’s claim of holding $100 million in funds, FEC records show that as of December 31 last year, the PAC reported no donation income or spending. Since the press event last September, Fellowship has issued only three public statements on the X platform—nearly “operating in stealth.”

The mismatch has drawn widespread skepticism. In its February 25 investigative report, CoinDesk noted that seven months after Fellowship was formed, it “had never shown up,” and the promised $100 million showed no trace in federal election commission disclosures.

Spiro’s appointment is seen as a signal that Fellowship is returning to the public spotlight after a period of quietude. The PAC said it would publish its first slate of candidate endorsements within the next few days. That leaves just over seven months until the midterm elections in November.

Bo Hines, executive director of the White House Digital Asset Advisory Council, voiced support for the appointment on X, writing: “The battle for American innovation needs serious advocates. Looking forward to seeing leaders elected who truly understand what’s at stake.”

Crypto PAC arms race: Fairshake sits on $193 million and already spent $8.6 million in Illinois

Fellowship is not the only political money machine in the crypto industry. Fairshake PAC, supported by Coinbase, Ripple, and a16z, along with its affiliated organizations, reported holding $193 million in cash as of January of this year—by far the largest super PAC war chest in the crypto industry.

Fairshake has begun taking action. As Cointelegraph reports, the PAC and its affiliated organizations have spent about $8.6 million in Illinois congressional races—six times what it spent in the state in 2024. In the Illinois March primary, some of the candidates supported by Fairshake did not prevail, but there is still a seven-month window before the midterm elections.

During the 2024 election cycle, Fairshake spent more than $130 million on media buys, supporting more than 50 candidates, the majority of whom won election. According to statistics from the nonprofit watchdog Public Citizen, nearly half of corporate money flowing into the 2024 elections came from the crypto industry.

Now, with the combined “ammunition” war chests of nearly $300 million from Fellowship and Fairshake, plus other political donation forces in the crypto industry, the midterm elections in 2026 are poised to become a new record for industry political spending.

Legislative backroom battle: The stablecoin yield dispute stalls the CLARITY Act, and Tether has everything to lose

The timing of Spiro’s appointment is not coincidental. The crypto industry’s most core legislative priority, the “Clarity Act” for digital asset markets (CLARITY Act), is stuck in a Senate impasse. One of the key points of contention is stablecoin yield, which directly affects Tether’s business model.

The CLARITY Act passed the House in July 2025 by a vote of 294 to 134. It cleared the Senate Agriculture Committee earlier this January. But at the Senate Banking Committee level, intense negotiations are underway between the banking industry and the crypto industry over whether stablecoin issuers can pay yield to users.

On March 20, Senators Thom Tillis and Angela Alsobrooks reached a preliminary agreement on stablecoin yield: passive yield payments based on held balances are prohibited, but reward programs based on trading activity are allowed. According to CoinDesk, crypto industry representatives reviewed the latest language in a closed-door session on Capitol Hill on March 23 and concluded that the wording is too narrow and ambiguous. Coinbase has already twice said it does not support the current draft.

The Senate Banking Committee’s markup is currently scheduled to resume after the Easter recess in late April. Senator Bernie Moreno warned that if the bill does not move forward before May, crypto legislation may no longer receive serious consideration during the midterm election cycle.

To make matters worse, on March 26, the White House AI and crypto czar David Sacks confirmed that his 130-day term had ended and that the government would not appoint a successor. The most crucial legislative sprint for the crypto industry will proceed without the White House’s chief champion.

Tether’s issued USDT is the world’s largest stablecoin, with a market cap of about $184 billion, but it is not available to U.S. residents. Tether launched a compliant stablecoin, USAT, for the U.S. market last year. The final outcome of the stablecoin yield provisions will directly determine how much operating space Tether and its competitors have in the U.S. market.

Against this backdrop, by putting executives in charge of a PAC, Tether is moving political influence from behind the scenes to the front stage—sending a clear message that, in the key window of the legislative chess match, use political money to back the industry’s interests.