Crypto politics and lobby: Tether would have paid 6.3 million to the architect of the GENIUS Act

A third of Nxum, and an office in the White House. According to the Wall Street Journal, Tether paid approximately $6.3 million net to Nxum, Bo Hines' firm. He founded this consulting firm with his father and a partner. However, at the same time, he headed the presidential council on digital assets and passed the GENIUS law on stablecoins. The first transfer, 2.49 million, dates from May 2025, three months before his departure. Hines is today boss of Tether in the United States, where the USDT issuer is launching USAT, its stablecoin compliant with this same law.

Key Points

Hines held a third of Nxum during his entire time in government, from January to August 9, 2025.

Signal messages show him sharing the progress of the GENIUS Act with his associates, who relayed to Paolo Ardoino.

Patrick Witt, his successor, left the White House on October 14 with no replacement announced.

Nxum, Notorious, Tether: the $6.3 million circuit

The setup described by the newspaper is indirect. In May 2025, Notorious, the marketing agency of intermediary Peter Vincer, first signed a contract of $415,000 per month for at least two years. Three transfers then follow: 2.49 million in May 2025, a second in December, then a third in April 2026. In total, around 7.47 million gross, and 6.3 million net for Nxum after commission. The WSJ cites internal documents, Signal messages and on-chain payments. Furthermore, an investment project of $56 million was also on the table, to give 25% of Nxum to Tether.

What gets in the way is the schedule. Hines led the president's council of advisors on digital assets from January to August 9, 2025. However, Donald Trump signed the GENIUS Act into law on July 18. According to the messages consulted by the newspaper, he transmitted legislative progress points and elements of language to his associates. They then forwarded them to the general director of Tether, Paolo Ardoino. The WSJ also credits Hines with advocating an extension of the compliance window for issuers, from 18 to 36 months. This provision appears in the final law and primarily benefits foreign issuers. Tether is based in El Salvador.

Nxum responds that Hines was unaware of the Tether file during his tenure and did not work on it. According to the company, he recused himself from his business and did not receive any Tether-related funds during this period. Peter Vincer says he was only an intermediary. He claims he handed the contract over to Nxum after Hines left. Neither Hines nor Tether have responded publicly. However, ten days after his resignation, on August 19, 2025, Bo Hines joined Tether as a strategic advisor. He became its American managing director in September.

White House: unmanned crypto three weeks before the midterms

The case comes at a time when the White House crypto office is emptying out. Patrick Witt, Hines' deputy and then successor, confirmed his departure from X during the night from Wednesday to Thursday. A White House official explains that his secondment from the Department of Defense "has expired." No one is replacing him yet. CoinDesk speaks of a vacancy that is all the more serious since David Sacks left in March. Deputy Harry Jung also left his position in July to join Nxum. Finally, the new AI “tsar”, Jay Clayton, does not have crypto in his scope.

Basically, the market structure law is at a standstill. The House passed the Clarity Act more than a year ago. But the text failed in a procedural vote in the Senate on September 15, against the backdrop of an ethical battle surrounding the Trump family's crypto interests. The Congress has gone on campaign. The most optimistic therefore hope for an end-of-year session after the elections on November 3. The Nxum story gives Democrats the example they were looking for. CoinDesk had in fact revealed in April that the same firm was the main provider of a super PAC financed mainly by Cantor Fitzgerald, the financial partner of Tether.