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Magyar23 Oct 2026
Senator Richard Blumenthal has asked Tether CEO Paolo Ardoino for records on a reported $6.3 million deal with Nxum, a firm co-founded by former White House crypto adviser Bo Hines. The letter alleges coordinated lobbying on the GENIUS Act, and the November 3 midterms could give Democrats more power to investigate.
US Senator Richard Blumenthal has asked Tether CEO Paolo Ardoino for records about the stablecoin issuer’s reported business ties to Nxum, a marketing company co-founded by former White House crypto adviser Bo Hines. The request follows a Wall Street Journal report that Tether signed a $6.3 million deal with Nxum, according to Cointelegraph.
What the Senate letter asks for
In a Thursday letter to Ardoino, Blumenthal, the Democratic ranking member of the Senate Permanent Subcommittee on Investigations, requested “records and information related to contracts, payments, communications, and lobbying” between Tether and Nxum. He framed the inquiry as part of a wider look at what he called the Trump administration’s “self-enrichment and self-dealings with cryptocurrency firms.”
The letter alleges that Hines did not divest his one-third stake in Nxum while serving in government, and that he coordinated with the company over encrypted messaging apps on lobbying around pending stablecoin legislation. Blumenthal also claimed the messages reportedly show Tether directly coordinating Nxum’s lobbying on the GENIUS Act, the US stablecoin law. These are allegations from a lawmaker’s letter and a press report, not findings of any court or regulator. Cointelegraph said Tether did not immediately respond to a request for comment.
Who is involved
Hines served as executive director of the President’s Council of Advisers on Digital Assets from January to August 2025. He then joined Tether as a strategic adviser and later became CEO of Tether US. Harry Jung, another former crypto adviser in the administration, left government in July 2026 and joined Nxum as a managing director in August.
Why the midterms matter here
As the ranking minority member, Blumenthal has limited power to force answers. That could change after the US midterm elections on November 3. Cointelegraph noted that, as of Friday, Kalshi contracts gave Democrats a 92% chance of retaking the House and 68% for the Senate. A shift in control would give Democrats more room to run investigations into crypto ties to the administration, and stablecoin issuers would likely be near the top of that list.
What it means for traders
- Headline risk, not a solvency event. The letter is about lobbying and payments, not Tether’s reserves. Nothing in the report points to a problem with USDT redemptions, but political headlines around the largest stablecoin can still move sentiment.
- Watch the calendar. The real test comes after November 3. If Congress changes hands, expect more formal probes, hearings and subpoenas aimed at crypto firms with Washington ties.
- Know your stablecoin exposure. If you park funds in USDT on an exchange, check which stablecoin pairs and alternatives your platform supports and how it handles withdrawals. Our exchange comparison and testing method cover this, along with our reviews of BingX and OKX.
Not financial advice.
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