Tether, a company worth more than $150 billion, said on 28 October 2025 it will cut off contributions to the crypto political fund Fairshake and instead send cash straight to politicians. Regulators and bank compliance teams are watching because the shift alters who pays for and who writes the rules for U.S. dollar-linked stablecoins. The decision signals a push for closer, more targeted influence over policy.
Tether says Fairshake underperformed in the 2024 elections, noting the PAC spent $133 million on crypto-friendly candidates out of a $197 million industry total, yet results fell short. Chief executive Paolo Ardoino told Bloomberg that “everyone is angry with Fairshake,” highlighting the gap between pooled money and actual wins. The firm has moved to act on that frustration: it hired Bo Hines as Chief of Digital Assets alongside a U.S. strategic adviser role.
Reports say the goal is to sit closer to lawmakers and to push a draft bill known as the GENIUS Act. Tether is also studying gifts that bypass PAC rules, including a reported $300 million pledge for a project tied to the White House East Wing.
The company has the cash and market clout to pursue this approach, with its latest reserve sheet listing 64.9% of assets in short-dated U.S. Treasury bills and 11.1% in overnight loans to the Treasury—holdings that give Tether extra pull in the government debt market.
Reasons for the switch and immediate actions
The shift from a shared PAC to direct checks carries clear risks and rewards. Lobbying efforts may splinter if firms no longer speak with one voice, raising compliance costs for each company. Targeted gifts and the placement of former staff inside Congress can turn into concrete bills like the GENIUS Act.
At the same time, large public donations invite press and auditor scrutiny, and heavy ownership of T-bills both supports demand for that debt and ties Tether’s day-to-day health to the short-term Treasury market.
The next test is whether the GENIUS Act advances and whether Tether’s new U.S. unit takes permanent shape. Those outcomes will show if the firm can convert its cash pile into lasting influence over future rules.
Tether’s break with Fairshake marks a strategic bet on direct influence. If its draft legislation gains traction and its U.S. presence solidifies, the company could reshape the politics and oversight of dollar-linked stablecoins; if not, the costs and scrutiny of going it alone may outweigh the benefits.
