Cryptocurrency political arms race escalates: Tether enters the scene, two major PACs target the midterm elections

Author: Deep Tide TechFlow

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Fellowship, a crypto super PAC that was formed seven months ago and claims to have raised over $100 million but has yet to spend a single dollar, on Wednesday announced the appointment of Jesse Spiro, Tether US’s vice president of regulatory affairs, as chair. This marks the first time a formal, publicly disclosed connection has been established between Tether and the PAC. At the same time, another major crypto PAC, Fairshake, has amassed a war chest of $193 million; combined, the two PACs’ nearly $300 million in political funding 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 Cointelegraph’s April 1 report, Fellowship PAC on Wednesday announced that Jesse Spiro, Tether US’s vice president of regulatory affairs, would serve as the organization’s chair, overseeing its next phase of expansion, and that it would release the first batch of candidate endorsement lists within the coming days. Fellowship is a super PAC founded in August 2025. Last September, it claimed it had raised “more than $100 million” from unnamed donors aligned with the crypto industry.

In a statement, Spiro said: “This is a critical moment for American innovation. We have an opportunity to ensure the United States continues as 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 any connection” to “executives in residence,” the relationship between Tether and Fellowship comes to light

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

When the PAC was launched, it did not disclose any leadership, donors, or key employees. Early reports listed Tether as an expected supporter, but Tether International subsequently formally denied any connection with the PAC. According to a CoinDesk report this 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, which is the custodian 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 formally taken the helm as PAC chair, finally settling the various rumors into public record. According to BeInCrypto, this is the first time Fellowship PAC has established a formal, publicly disclosed relationship with Tether’s official entity.

Spiro joined Tether in 2024 as head of government affairs. Previously, he handled blockchain and digital-asset regulatory relationships at PayPal. Earlier still, he served as government affairs lead at Chainalysis, an on-chain analytics company.

A $100 million “war chest” with no shots fired so far; FEC records show zero spending

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

The contrast has triggered widespread skepticism. In an investigation report dated February 25, CoinDesk noted that seven months after its formation, Fellowship had “never showed up,” and that the promised $100 million war chest left no trace in disclosures to the Federal Election Commission.

Spiro’s appointment is seen as a signal that Fellowship is returning to public view after its quiet period. The PAC said it will release the first batch of candidate endorsements in the coming days, with more than seven months still remaining until the midterm elections.

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

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

Fellowship isn’t the only political money machine in the crypto industry. Supported by Coinbase, Ripple, and a16z, Fairshake PAC and its affiliated organizations reported having $193 million in cash as of January of this year, making it the largest super PAC by funding size in the crypto industry.

Fairshake has started taking action. According to Cointelegraph, the PAC and its affiliated organizations have spent about $8.6 million in Illinois congressional races—six times what it spent in that state in 2024. In the March Illinois primary election, some of the candidates supported by Fairshake were not victorious, 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 placements, supporting more than 50 candidates, most of whom were elected. According to statistics from the nonprofit watchdog Public Citizen, among corporate funds that flowed into elections in 2024, nearly half came from the crypto industry.

Now that Fellowship and Fairshake together have nearly $300 million in war chests, plus other political donation forces in the crypto industry, the 2026 midterm elections are expected to become a new record for industry political spending.

Legislative backroom battle: The stablecoin yield dispute stalls the CLARITY Act; Tether’s interests are on the line

The timing of Spiro’s appointment is not coincidental. The crypto industry’s core legislative priority, the Digital Asset Market Clarity Act (CLARITY Act), is stuck in a Senate deadlock, 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. It passed the Senate Agriculture Committee in January this year. But at the Senate Banking Committee level, the banking industry and the crypto industry are locked in intense debate over whether stablecoins can pay yield to users.

On March 20, Senators Thom Tillis and Angela Alsobrooks reached a framework compromise on stablecoin yield: prohibiting passive yield payments based on held balances, but allowing reward programs based on transaction activity. According to CoinDesk, on March 23, crypto industry representatives reviewed the latest language behind closed doors on Capitol Hill and believed the wording was 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 to take place 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, 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 critical legislative push phase for the crypto industry will proceed without the White House’s chief advocate.

USDT issued by Tether 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 the compliant stablecoin USAT for the U.S. market. The final outcome of the stablecoin yield provisions will directly determine the space in which Tether and its competitors can operate in the U.S. market.

Against this backdrop, by installing executives to serve as PAC chair, Tether is building political influence from behind the scenes to the front of the stage. The signal is clear: during the crucial legislative window, use political capital to protect industry interests.