A super PAC focused on cryptocurrency, known for its support of Republican candidates and President Donald Trump, has taken an unexpected turn by endorsing a Democrat. The Fellowship PAC announced a substantial investment of $300,000 to support New York Representative Ritchie Torres as he heads into the final stretch of his reelection primary campaign. This ad expenditure is notably funneled through Nxum Group, a firm co-founded by Trump’s former chief crypto advisor.
The PAC’s primary benefactor is Cantor Fitzgerald, an investment bank led by the sons of Commerce Secretary Howard Lutnick. Torres currently faces little serious competition in the upcoming June 23 primary, with a recent public poll showing him significantly ahead of his nearest challenger, former Democratic National Committee vice chair Michael Blake.
Despite the PAC’s historical focus on Republican candidates, the collaboration with Torres illustrates the growing ties between the crypto industry and the Congressman. Torres has emerged as a strong advocate for crypto, serving as a co-founder of the Congressional Crypto Caucus and holding a seat on the House Committee on Financial Services.
This shift in strategy from the Fellowship PAC is notable, particularly as it had previously only supported Republican candidates. Reports have characterized the PAC as being closely aligned with the GOP, especially following its launch announcement last September, which praised Trump for aiming to position America as a leader in the global cryptocurrency arena. However, with Republican prospects in the House diminishing after the midterm elections, the PAC appears to be recalibrating its approach.
In addition to the Fellowship PAC’s engagement, Torres has also benefitted from support from Protect Progress, another crypto-related super PAC affiliated with Fairshake. This group has invested nearly $1.4 million in advertising to assist the Bronx Democrat. The two super PACs represent different segments of the cryptocurrency sector. The Fellowship PAC’s leadership includes a vice president from Tether, a major stablecoin enterprise seeking to enhance its foothold in the U.S. market amidst scrutiny concerning its involvement in various financial crimes.
Though Tether has not made direct contributions to the Fellowship PAC, the PAC has received a significant influx of funds from Cantor Fitzgerald, which holds billions of dollars in U.S. Treasury bills for Tether. Lutnick, after stepping down as the head of Cantor, shifted his focus to his role in the Trump administration.
The ad spending on behalf of Torres was coordinated through Nxum Group, where Bo Hines, a former Republican congressional candidate and advisor to Trump on digital assets, serves as CEO. Meanwhile, Protect Progress and Fairshake have garnered their funding from prominent crypto stakeholders, including the well-known exchange Coinbase and venture capital firm Andreessen Horowitz. Though Fairshake has extended its financial support to candidates on both sides of the political spectrum, it has faced criticism for its influence in tipping political outcomes in favor of Republicans in the past.
