Senator Richard Blumenthal is demanding payment records and communications from Tether regarding reported $6 million payments to Nxum, a consulting firm co-owned by former White House crypto adviser Bo Hines.
On October 22, 2025, Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, sent a letter to Tether CEO Paolo Ardoino requesting documentation of the payments. Blumenthal cited potential violations of federal ethics, anticorruption, and lobbying laws.
“Tether’s alleged multimillion-dollar payment to a firm controlled by the White House official primarily responsible for cryptocurrency policy implicates federal ethics, anticorruption, and lobbying laws,” Blumenthal wrote in the letter.
The Payment Structure
According to the inquiry, Tether agreed to pay Nxum $415,000 per month for strategic lobbying, public relations, and advisory services beginning in May 2025. The total reported payments to Nxum exceed $6 million.
Tether initially routed cryptocurrency payments through Notorious, a marketing company headed by Peter Vincer, before transferring funds to Nxum. According to Blumenthal’s inquiry, Nxum allegedly offered Vincer $300,000 in exchange for signing a nondisclosure agreement.
Tether also reportedly considered acquiring a 25 percent ownership stake in Nxum for approximately $56 million, though
Bo Hines and White House Service
Bo Hines served as executive director of the White House’s digital asset advisory council while retaining a one-third ownership interest in Nxum. He left White House service in August 2025 and was named head of Tether’s US stablecoin initiative in September 2025.
Hines’ dual role during his White House tenure raised questions about potential conflicts of interest. The White House digital asset advisory council was responsible for cryptocurrency policy during the drafting and passage of the GENIUS Act, which President Trump signed into law in July 2025. That legislation established a federal regulatory framework for dollar-backed stablecoins and provided transition pathways for foreign stablecoin issuers to serve US customers.
Regulatory Timeline
The Office of the Comptroller of the Currency finalized regulations governing payment stablecoin issuers on October 21, 2025, one day before Blumenthal’s inquiry. Those regulations take effect January 18, 2027.
Tether launched USA₮ in January 2026 under a federally regulated structure. Anchorage Digital Bank serves as the regulated issuer, and Cantor Fitzgerald acts as reserve custodian and preferred primary dealer for the token.
Blumenthal’s inquiry does not establish that Tether or Hines violated federal law. Tether and Hines have not publicly responded to the senator’s demands for records.
