Key Takeaways
- • Senator Richard Blumenthal, Democratic ranking member of the Senate Permanent Subcommittee on Investigations, requested records from Tether CEO Paolo Ardoino after a Wall Street Journal report that Tether signed a $6.3 million deal with Nxum, a marketing company co-founded by former White House crypto adviser Bo Hines.
- • The request seeks records on contracts, payments, communications, and lobbying between Tether and Nxum, and the probe covers Nxum, Tether and Hines.
- • Blumenthal alleges Tether directly coordinated Nxum's lobbying on the GENIUS Act stablecoin legislation, citing messages in which Ardoino reportedly demanded Nxum 'obliterate' the bill's opponents.
- • Hines, who was executive director of the President's Council of Advisers on Digital Assets until August 2025, joined Tether as a strategic adviser and later became CEO of Tether US; Tether had not responded to Cointelegraph's request for comment.
- • Prediction markets on Kalshi and Polymarket favored Democrats retaking control of Congress in 2027, a factor that could expand investigative authority over Trump-administration crypto ties.
Summary
Senator Richard Blumenthal has requested information from Tether CEO Paolo Ardoino following a Wall Street Journal report that the stablecoin issuer signed a $6.3 million deal with Nxum, a marketing company co-founded by former White House crypto adviser Bo Hines. In a letter to Ardoino dated Thursday, the Connecticut lawmaker said the Senate Permanent Subcommittee on Investigations is seeking "records and information related to contracts, payments, communications, and lobbying" between Tether and Nxum. According to Blumenthal, the probe into Nxum, Tether and Hines is part of a broader inquiry into what he described as the Trump administration's "self-enrichment and self-dealings with cryptocurrency firms."
Blumenthal alleged that Hines, who has not divested his one-third stake in Nxum, worked closely with the company over encrypted messaging applications to coordinate lobbying and pressure on members of Congress opposed to, or seeking changes to, pending stablecoin legislation. He said those messages reportedly show Tether directly coordinating Nxum's lobbying on the GENIUS Act, with Ardoino demanding that Nxum "obliterate" the bill's opponents. Blumenthal wrote that the "highly unusual terms and nature" of Tether's relationships with Nxum and Hines raise "alarming ethical and legal concerns," suggesting Tether was likely aware of the illegality and impropriety of paying a current White House official with a direct role in shaping crypto legislation.
Hines served as executive director of the President's Council of Advisers on Digital Assets from January to August 2025, before joining Tether as a "strategic adviser." He later became CEO of Tether US. Separately, Harry Jung, another Trump-administration crypto adviser, left his post in July 2026 and joined Nxum as a managing director in August. Cointelegraph reported that Trump, his family and administration members continue to face scrutiny over alleged financial gains from crypto policy, and that the president disclosed earning $1.4 billion from crypto-related investments in 2025. Tether did not immediately respond to Cointelegraph's request for comment.
Blumenthal's authority is limited as ranking member of the subcommittee, but the outcome of the 2026 midterm elections, scheduled for Nov. 3, could alter party control of the House and Senate. As of Friday, Kalshi and Polymarket event contracts gave Democrats 92% and 68% chances, respectively on Kalshi, of retaking the House and Senate in 2027. A shift in control would likely expand Democrats' ability to pursue investigations into Trump administration ties to the crypto industry.
Blumenthal alleged that Hines, who has not divested his one-third stake in Nxum, worked closely with the company over encrypted messaging applications to coordinate lobbying and pressure on members of Congress opposed to, or seeking changes to, pending stablecoin legislation. He said those messages reportedly show Tether directly coordinating Nxum's lobbying on the GENIUS Act, with Ardoino demanding that Nxum "obliterate" the bill's opponents. Blumenthal wrote that the "highly unusual terms and nature" of Tether's relationships with Nxum and Hines raise "alarming ethical and legal concerns," suggesting Tether was likely aware of the illegality and impropriety of paying a current White House official with a direct role in shaping crypto legislation.
Hines served as executive director of the President's Council of Advisers on Digital Assets from January to August 2025, before joining Tether as a "strategic adviser." He later became CEO of Tether US. Separately, Harry Jung, another Trump-administration crypto adviser, left his post in July 2026 and joined Nxum as a managing director in August. Cointelegraph reported that Trump, his family and administration members continue to face scrutiny over alleged financial gains from crypto policy, and that the president disclosed earning $1.4 billion from crypto-related investments in 2025. Tether did not immediately respond to Cointelegraph's request for comment.
Blumenthal's authority is limited as ranking member of the subcommittee, but the outcome of the 2026 midterm elections, scheduled for Nov. 3, could alter party control of the House and Senate. As of Friday, Kalshi and Polymarket event contracts gave Democrats 92% and 68% chances, respectively on Kalshi, of retaking the House and Senate in 2027. A shift in control would likely expand Democrats' ability to pursue investigations into Trump administration ties to the crypto industry.
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