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

Byline: Shen Chao TechFlow

Shen Chao’s guide: Fellowship, a crypto super PAC that was founded seven months ago and claims to have raised over $100 million yet has still spent not a single dollar to date, on Wednesday announced the appointment of Jesse Spiro, Tether US’s vice president of regulatory affairs, as chair. This is the first time Tether has established an official, publicly visible relationship with the PAC. At the same time, another major crypto PAC, Fairshake, has already amassed a $193 million “ammunition” reserve. The two PACs together—nearly $300 million in political funding—are now targeting the midterm elections in mid-November, while the legislative standoff in Congress over stablecoin yield remains unresolved.

The crypto industry’s political arms race is escalating.

According to Cointelegraph’s April 1 report, Fellowship PAC announced Wednesday that Jesse Spiro, Tether US’s vice president of regulatory affairs, will serve as the organization’s chair, leading its next phase of expansion, and will publish its first slate of candidate endorsements within the coming days. Fellowship is a super PAC established in August 2025. Last September, it claimed to have raised “more than $100 million” from an unnamed donor—or 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 hub 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 any ties” to “executives in the driver’s seat,” Tether’s relationship with Fellowship comes into view

Since Fellowship PAC’s high-profile debut last September, the identity of the source of its funding 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 an anticipated supporter, but Tether International later formally denied any connection to the PAC. According to a CoinDesk report in February this year, 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 serves as the custodian managing tens of billions of dollars’ worth of reserves for Tether. The PAC’s registered address is in Bethesda, Maryland.

Now, a current Tether US executive has officially been named chair of the PAC, bringing closure to the various rumors—now on public record. According to BeInCrypto, this is the first time Fellowship PAC has established an official, publicly visible association with Tether.

Spiro joined Tether in 2024 as head of government affairs. Previously, he worked at PayPal in roles related to blockchain and digital-asset regulatory relationships, and earlier he served in government affairs leadership at the on-chain analytics firm Chainalysis.

A “$100 million ammunition” reserve with no shots fired so far—FEC records show zero spending

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

This contrast has triggered widespread skepticism. In a February 25 investigative report, CoinDesk noted that seven months after Fellowship was formed, it “never showed up,” and there was no trace of the promised $100 million in disclosures to the Federal Election Commission.

Spiro’s appointment is seen as a signal that Fellowship is returning from its quiet period to the public spotlight. The PAC says it will publish the first slate of candidate endorsements within the coming days, with more than seven months still left until the midterm elections in November.

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

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

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

Fairshake has already taken action. As Cointelegraph reports, the PAC and its affiliated organizations have spent about $8.6 million in Illinois congressional races, which is six times what it spent in that state in 2024. In the Illinois primary in March, some of the candidates backed by Fairshake did not win, 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, most of whom were elected successfully. According to figures from the nonprofit watchdog Public Citizen, nearly half of corporate money flowing into the 2024 elections came from the crypto industry.

Now, with Fellowship and Fairshake together totaling nearly $300 million in “ammunition,” plus other political-donation forces in the crypto sector, the 2026 midterm elections are poised to become a new record for industry political spending.

Legislative showdown: The stablecoin-yield controversy stalls the CLARITY Act—Tether has major stakes

The timing of Spiro’s appointment is not coincidental. The crypto industry’s most core legislative priority—the Clarity Act (CLARITY Act)—is stuck in a Senate gridlock, and 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 in January this year. But at the Senate Banking Committee level, banks and the crypto industry are locked in a fierce battle over whether stablecoin issuers can pay yield to users.

On March 20, Senators Thom Tillis and Angela Alsobrooks reached a principle-level compromise on stablecoin yield: passive yield payments based on held balances would be prohibited, but rewards plans based on trading activity would be allowed. CoinDesk reports that after crypto industry representatives reviewed the latest language privately on Capitol Hill on March 23, they concluded it was too narrow and ambiguous. Coinbase has twice stated 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 is not advanced before May, crypto legislation may no longer receive serious consideration during 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. The most crucial legislative push for the crypto industry will move forward without the White House’s chief advocate.

Tether’s issued USDT is the world’s largest stablecoin, with a market value of about $184 billion, but it is not aimed at 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 placing executives at the helm of the PAC, Tether is building political influence from behind the scenes into the public spotlight. The message is clear: during the critical window for legislative negotiations, political money will be used to protect the industry’s interests.