Tether executive leads the second-largest crypto PAC, betting $300 million on the midterm elections

Original author: Deep Tide TechFlow

Intro: Fellowship, a crypto super PAC that was founded seven months ago and claims to have raised more than $100 million yet has not spent a single cent to date, on Wednesday announced the appointment of Jesse Spiro, Tether US’s vice president for regulatory affairs, as chair. This is the first time Tether has formed a formal, publicly disclosed connection with the PAC. At the same time, another major crypto PAC, Fairshake, has already amassed a $193 million war chest. The two PACs combined—nearly $300 million in political funds—are targeting the midterm elections in mid-November, while the legislative standoff in Congress over stablecoin yield remains unresolved.

The political arms race in the crypto industry is escalating.

According to a report by Cointelegraph on April 1, Fellowship PAC announced Wednesday that Jesse Spiro, Tether US’s vice president for regulatory affairs, will serve as the organization’s chair, overseeing its next phase of expansion, and will publish its first list 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 a statement, Spiro said: “This is a pivotal moment for American innovation. We have an opportunity to ensure the United States remains a global hub for builders, entrepreneurs, and technological progress. Fellowship PAC is committed to supporting leaders who understand the stakes and are willing to take action.”

From “denying ties” to “executives in place,” the relationship between Tether and Fellowship comes into view

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

When the PAC was formed, it did not disclose any management personnel, donors, or key employees. Early reporting listed Tether as an expected supporter, but Tether International later formally denied any association with the PAC. According to a February report this year by CoinDesk, a Tether International spokesperson explicitly stated that “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—an entity that manages 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 been appointed chair of the PAC, and the various rumors have finally solidified into public record. According to a report by BeInCrypto, this marks the first formal, public association between Fellowship PAC and Tether’s official organization.

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

A $100 million “war chest” that has not fired a single shot to date; FEC records show zero spending

Despite Fellowship’s claim of $100 million in funding, FEC records show that as of December 31 of last year, the PAC had not reported any donation income or spending. Since its September press event, Fellowship has published only three public statements on the X platform, operating almost “in stealth.”

This discrepancy has prompted widespread questions. In an investigative story dated February 25, CoinDesk noted that since its launch seven months earlier, Fellowship has “never shown up,” and that its promised $100 million has left no trace in disclosures to the Federal Election Commission.

Spiro’s appointment is viewed as a signal that Fellowship is returning to public view after its quiet period. The PAC said it will publish its first list of candidate endorsements in the coming days—still more than seven months ahead of the midterm elections.

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

Crypto PAC arms race: Fairshake has $193 million, already spent $8.6 million in Illinois

Fellowship is not the only political money machine in the crypto industry. Fairshake PAC and its affiliated organizations, supported by Coinbase, Ripple, and a16z, reported holding $193 million in cash as of this January—making it the largest super PAC by funding size in the crypto industry right now.

Fairshake has already moved from plans to action. As Cointelegraph reports, the PAC and its affiliated organizations have spent about $8.6 million in Illinois congressional races, which is six times its spending in that state in 2024. In the March Illinois primary, some of the candidates supported by Fairshake fell short, but there is still a seven-month window before the midterm elections.

In the 2024 election cycle, Fairshake spent more than $130 million on media buys, backing more than 50 candidates, most of whom were ultimately elected. According to statistics from the nonprofit watchdog Public Citizen, among corporate money flowing into the 2024 election, nearly half came from the crypto industry.

Now, with the two major PACs—Fellowship and Fairshake—combining for nearly $300 million in war chest money, plus other political donation forces from the crypto industry, the 2026 midterm elections are poised to set a new record for industry political spending.

Legislative showdown: the stablecoin yield controversy stalls the CLARITY Act; Tether has a direct stake

The timing of Spiro’s appointment is not a coincidence. The crypto industry’s top legislative priority, the “Clarifying Lawful Regulatory Framework for Digital Assets Act” (CLARITY Act), is stuck in a Senate impasse, and one of the key points of contention is stablecoin yield—directly affecting Tether’s business model.

The CLARITY Act passed the House in July 2025 by a vote of 294 to 134. In January, it cleared the Senate Agriculture Committee. But at the level of the Senate Banking Committee, banks and the crypto industry are engaged in a fierce fight over whether stablecoins can pay yield to users.

On March 20, Senators Thom Tillis and Angela Alsobrooks reached a bipartisan understanding on stablecoin yield: banning passive yield payments based on held balances, but allowing reward programs based on trading activity. According to CoinDesk, after crypto industry representatives reviewed the latest language behind closed doors on Capitol Hill on March 23, they said the wording was too narrow and vague. Coinbase has stated twice that it does not support the current draft.

The Senate Banking Committee’s markup is currently scheduled for late April, after the Easter recess. Senator Bernie Moreno warned that if the bill does not move forward before May, crypto legislation may not receive serious consideration again within the midterm election cycle.

To make matters worse, on March 26, 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. During the most critical legislative push phase for the crypto industry, the effort will proceed without the White House’s top advocate.

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

Against this backdrop, by installing executives as chair of the PAC, Tether is moving political influence from behind the scenes to center stage—a clear signal that, during the key legislative window, political funding will be used to safeguard the industry’s interests.

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