Tether Executive Takes Helm of Second-Largest Crypto PAC, $300 Million Bet on Midterm Elections
- Core Viewpoint: The political lobbying power of the cryptocurrency industry has significantly increased. Tether, through its executive, has formally taken leadership of the super political action committee (PAC) Fellowship, marking its move from behind the scenes to the forefront. This aims to influence key legislation and protect industry interests. Combined with another major PAC, Fairshake, nearly $300 million in funds will target the upcoming midterm elections.
- Key Elements:
- Jesse Spiro, Tether's Vice President of US Regulatory Affairs, has been appointed as Chairman of the super PAC Fellowship. This is the first public, formal association between Tether and this PAC, following previous denials of any connection by Tether.
- Fellowship claims to have raised over $100 million, but Federal Election Commission records show zero expenditures to date. In contrast, another crypto industry super PAC, Fairshake, holds $193 million and has already spent $8.6 million on campaign activities in Illinois.
- Key legislation, the Clarity for Digital Tokens Act (CLARITY Act), is stalled in the Senate due to contentious clauses like stablecoin yield payments. Its outcome will directly impact the business models of stablecoin issuers like Tether.
- The crypto industry is facing a critical legislative window, but the White House position of "AI and Crypto Czar" remains vacant. The industry is advancing its lobbying efforts while lacking a key internal advocate within the government.
Original Author: Deep Tide TechFlow
Introduction: Fellowship, a crypto super PAC established seven months ago that claimed to have raised over $100 million but has yet to spend a single cent, announced on Wednesday the appointment of Jesse Spiro, Vice President of Regulatory Affairs at Tether US, as its Chairman. This marks the first formal, public link established between Tether and this PAC. Meanwhile, Fairshake, another major crypto industry PAC, boasts a war chest of $193 million. Combined, the two PACs have nearly $300 million in political funds aimed at the November midterm elections, while legislative battles in Congress over stablecoin yields remain unresolved.
The political arms race in the crypto industry is escalating.
According to a Cointelegraph report on April 1, Fellowship PAC announced on Wednesday that Jesse Spiro, Vice President of Regulatory Affairs at Tether US, will assume the role of Chairman for the organization. He will be responsible for leading its next phase of expansion, and the first list of candidate endorsements will be announced within the coming days. Fellowship is a super PAC founded in August 2025, which claimed last September to have raised "over $100 million" from unnamed donors aligned with the crypto industry.
Spiro stated in the announcement: "This is a pivotal moment for American innovation. We have the opportunity to ensure America continues to be the global hub for builders, entrepreneurs, and technological progress. The Fellowship PAC is committed to supporting leaders who understand what is at stake and are willing to take action."
From "Denying Association" to "Executive in Charge": The Relationship Between Tether and Fellowship Comes to Light
Since its high-profile debut last September, the identity of the primary backer behind Fellowship PAC has been one of the industry's biggest mysteries.
The PAC did not disclose any officers, donors, or key employees upon its establishment. Early reports listed Tether as an expected supporter, but Tether International subsequently formally denied any association with the PAC. According to a CoinDesk report in February, 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, the very custodian institution managing Tether's multi-billion dollar reserves. The PAC's registered address is in Bethesda, Maryland.
Now, with a current Tether US executive formally taking the helm as PAC Chairman, the previous rumors have finally solidified into public record. According to BeInCrypto, this marks the first formal, public association established between Fellowship PAC and Tether officially.
Spiro joined Tether in 2024 as Head of Government Affairs. Prior to that, he was responsible for blockchain and digital asset regulatory relations at PayPal, and earlier held a leadership role in government affairs at the on-chain analytics firm Chainalysis.
$100 Million "War Chest" Remains Unspent, FEC Records Show Zero Expenditures
Despite Fellowship's claim of possessing $100 million in funds, FEC records show that as of December 31 last year, the PAC reported no donation income or expenditures. Since its launch event last September, Fellowship has only made three public statements on the X platform, operating almost "invisibly."
This discrepancy has sparked widespread skepticism. A CoinDesk investigative report on February 25 pointed out that Fellowship has been "nowhere to be seen" in its seven months of existence, with its promised $100 million showing no trace in Federal Election Commission disclosures.
Spiro's appointment is seen as a signal of Fellowship's return to the public eye from its period of dormancy. The PAC stated it will announce its first candidate endorsements in the coming days, with over seven months remaining until the November midterm elections.
Bo Hines, Executive Director of the White House Digital Asset Advisory Council, expressed support for the appointment on the X platform, posting: "The fight for American innovation needs serious advocates. Looking forward to seeing leaders who truly understand what is at stake get elected."
Crypto PAC Arms Race: Fairshake Holds $193 Million, Has Already Spent $8.6 Million in Illinois
Fellowship is not the crypto industry's only political funding machine. The Fairshake PAC, backed by Coinbase, Ripple, and a16z, along with its affiliated organizations, reported holding $193 million in cash as of January this year, making it the crypto industry's largest super PAC by funding scale.
Fairshake has already begun taking action. According to Cointelegraph, the PAC and its affiliates have spent approximately $8.6 million on congressional races in Illinois, six times its 2024 spending in the state. In the March Illinois primaries, some candidates supported by Fairshake did not win, but there remains a seven-month window until the midterm elections.
During the 2024 election cycle, Fairshake spent over $130 million on media placements, with the majority of the more than 50 candidates it supported successfully elected. According to statistics from the nonprofit oversight organization Public Citizen, nearly half of the corporate funds flowing into elections in 2024 came from the crypto industry.
Now, with the combined war chests of Fellowship and Fairshake approaching $300 million, plus other political donation forces within the crypto industry, the 2026 midterm elections are poised to set a new record for the industry's political spending.
Legislative Shadow War: Stablecoin Yield Dispute Stalls CLARITY Act, Tether's Interests at Stake
The timing of Spiro's appointment is not coincidental. The Clarity Act for Digital Assets (CLARITY Act), the crypto industry's most critical legislative priority, is currently deadlocked in the Senate. One of the focal points of contention is stablecoin yields, which directly impacts Tether's business model.
The CLARITY Act passed the House of Representatives in July 2025 by a vote of 294 to 134 and cleared the Senate Agriculture Committee in January this year. However, at the Senate Banking Committee level, a fierce battle is underway between the banking industry and the crypto industry over whether stablecoins can pay yields to users.
On March 20, Senators Thom Tillis and Angela Alsobrooks reached a principled compromise on stablecoin yields: prohibiting passive yield payments based on holding balances, but allowing reward programs based on transactional activity. According to CoinDesk, after crypto industry representatives reviewed the latest text in a closed-door meeting on Capitol Hill on March 23, they considered the language too narrow and ambiguous. Coinbase has stated twice that it does not support the current draft.
The Senate Banking Committee's markup is currently scheduled for after the Easter recess in late April. Senator Bernie Moreno warned that if the bill does not advance before May, crypto legislation may not receive serious consideration again within the midterm election cycle.
Compounding the issue, David Sacks, the White House's AI and Crypto Czar, confirmed on March 26 that his 130-day term had expired and the administration would not appoint a successor. The crypto industry's most critical legislative push will proceed without its chief advocate within the White House.
Tether's USDT is the world's largest stablecoin, with a market cap of approximately $1.84 trillion, but it is not offered to U.S. residents. Tether launched USAT, a compliant stablecoin for the U.S. market, last year. The final outcome of the stablecoin yield provisions will directly determine the operational space for Tether and its competitors in the U.S. market.
Against this backdrop, Tether's move to have an executive assume the chairmanship of a PAC shifts its political influence-building from behind the scenes to the forefront, sending a clear signal: during this critical window for legislative battles, political funds will be used to safeguard industry interests.
