Author: Deep Tide TechFlow

Deep Tide Introduction: The crypto super PAC Fellowship, which was established seven months ago and claims to have raised over $100 million without spending a penny, announced on Wednesday the appointment of Jesse Spiro, Vice President of Regulatory Affairs at Tether US, as its chairman. This marks the first official public connection between Tether and the PAC. Meanwhile, another major crypto PAC, Fairshake, has amassed a war chest of $193 million, and the two PACs combined are targeting nearly $300 million in political funding aimed at the mid-term elections in November, while the legislative game surrounding stablecoin yields remains unresolved in Congress.

The political arms race in the crypto industry is escalating.

According to Cointelegraph, on April 1, Fellowship PAC announced on Wednesday that Jesse Spiro, Vice President of Regulatory Affairs at Tether US, will serve as the organization’s chairman, responsible for leading its next phase of expansion, and will announce the first batch of endorsed candidates in the coming days. Fellowship is a super PAC established in August 2025 that claimed to have raised "over $100 million" from unnamed donors allied with the crypto industry in September last year.

Spiro stated in a press release: "This is a critical moment for American innovation. We have the opportunity to ensure that America continues to be a global center for builders, entrepreneurs, and technological advancement. Fellowship PAC is committed to supporting leaders who understand the stakes and are willing to take action."

From "denying associations" to "executives at the helm", the relationship between Tether and Fellowship emerges

Since its high-profile debut in September last year, the identity of the financial backers behind Fellowship PAC has been one of the industry's biggest mysteries.

The PAC did not disclose any management personnel, donors, or key employees at its inception. Early reports listed Tether as a presumed supporter, but Tether International subsequently officially denied any association with the PAC. According to a report by CoinDesk in February this year, a Tether International spokesperson explicitly stated that "Tether International has no affiliation with Fellowship."

However, FEC records tell a different story. Fellowship's registered financial officer, Mitchell Nobel, is an executive at Cantor Fitzgerald, which is the custodian managing 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 position of PAC chairman, confirming previous rumors with public records. According to BeInCrypto, this marks the first formal and public connection between Fellowship PAC and Tether.

Spiro joined Tether in 2024 as the director of government affairs, having previously handled blockchain and digital asset regulatory relations at PayPal, and before that held a government affairs leadership position at blockchain analytics firm Chainalysis.

$100 million "war chest" has yet to be spent, FEC records show zero expenditure

Despite Fellowship claiming to have $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 press conference last September, Fellowship has only issued three public statements on X platform, operating almost "incognito."

This contrast has sparked widespread skepticism. CoinDesk's investigative report on February 25 pointed out that in the seven months since its establishment, "it has never been present," and its promised $100 million in funds has left no trace in the Federal Election Commission's disclosures.

Spiro's appointment is seen as a signal of Fellowship's return to public visibility after a silence. The PAC announced it will disclose its first batch of endorsed candidates in the coming days, with more than seven months remaining until the mid-term elections in November.

Bo Hines, executive director of the White House Digital Asset Advisory Committee, expressed support for the appointment on X platform, stating: "The fight for American innovation requires serious advocates. Looking forward to seeing leaders who truly understand the stakes elected."

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

Fellowship is not the only political funding machine in the crypto industry. The Fairshake PAC, backed by Coinbase, Ripple, and a16z, reported as of January this year that it has $193 million in cash, making it the largest super PAC by funding in the crypto industry.

Fairshake has already taken action. According to Cointelegraph, the PAC and its affiliates have spent approximately $8.6 million in Illinois congressional races, six times its expenses in the state for 2024. Some Fairshake-supported candidates did not prevail in the Illinois primary elections in March, but there is still a seven-month window until the mid-term elections.

In the 2024 election cycle, Fairshake has spent over $130 million on media buys, and most of the over 50 supported candidates were successfully elected. According to statistics from the non-profit watchdog organization Public Citizen, nearly half of the corporate funds flowing into elections in 2024 come from the crypto industry.

Now, with nearly $300 million in total war chests between Fellowship and Fairshake PACs, combined with other political donation forces in the crypto industry, the mid-term elections of 2026 are likely to become a new record for industry political spending.

Legislative covert battle: Stablecoin yield controversy stalls the CLARITY Act, Tether's interests are at stake

The timing of Spiro's appointment is no coincidence. The core legislative priority for the crypto industry, the Digital Asset Market CLARITY Act, is mired in a Senate deadlock, with one of the focal points being stablecoin yields, which directly affect Tether's business model.

The CLARITY Act passed the House on July 2025 with a vote of 294 to 134, and was approved for review by the Senate Agriculture Committee in January this year. However, within the Senate Banking Committee, there is a fierce game between the banking industry and the crypto industry over whether stablecoins can pay yields to users.

On March 20, Senator Thom Tillis and Angela Alsobrooks reached a principled compromise on stablecoin yields: prohibiting passive yield payments based on holding balances but allowing rewards programs based on transaction activities. According to CoinDesk, representatives from the crypto industry stated on March 23 that after reviewing the latest text on Capitol Hill behind closed doors, they found the language too narrow and vague. Coinbase has stated twice that it does not support the current draft.

The markup of the Senate Banking Committee is currently scheduled to resume 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 within the mid-term election cycle.

To make matters worse, David Sacks, the White House czar for AI and crypto affairs, confirmed on March 26 that his 130-day term has expired and that the government will not appoint a successor. The critical legislative sprint for the crypto industry will advance without the chief advocate from the White House.

The USDT issued by Tether is the largest stablecoin globally, with a market capitalization of about $184 billion, but it is not available for US residents. Tether launched a compliant stablecoin, USAT, for the US market last year. The final direction of stablecoin yield terms will directly determine Tether and its competitors' operational space in the US market.

In this context, Tether's move to have executives take up the position of PAC chairman brings political influence construction to the forefront, sending a clear signal: during the critical window of legislative game-playing, using political funds to safeguard industry interests.