It is reported that Tether paid $6.3 million through an arrangement involving a consulting firm jointly owned by former White House cryptocurrency advisor Bo Hines; the first payment was received during the period when he helped to push for federal stablecoin legislation.

It is reported that Tether paid approximately $6.3 million to a consulting firm that is partially owned by former White House cryptocurrency advisor Bo Hines.

The first payment was made in May 2025, at which time Hines was serving in the Trump administration and was assisting in advancing GENIUS Act.

Hines holds one-third of the equity in Nxum, however, the company denies that he was involved in any business dealings with Tether during his tenure in government.

- Hines left the White House in August 2025 and subsequently joined Tether, where he is responsible for their US stablecoin business.

According to a survey by The Wall Street Journal on October 15, these payments are related to Nxum. Nxum is a consulting firm founded by Hines along with his father and another business partner.

During the period from January to August 2025, when Hines served as the Executive Director of the White House Digital Assets Commission, they still held one-third of the equity in Nxum.

During this period, he was involved in the work of GENIUS Act. This bill established federal regulations for stablecoin issuers, which include the companies behind Tether — USDT.

This investigation reviewed internal documents, Signal messages, and blockchain payment records to trace this financial arrangement.

Nxum denies that Hines was involved in any transactions with Tether during his tenure in government. The company stated that Hines has withdrawn from company operations and did not receive any funds from Tether during his time in the White House.

The first payment for Tether was made earlier than GENIUS Act was approved.

This business arrangement began to take shape in April 2025, when the father of Hines and another partner, Nxum, met with Tether's CEO, Paolo Ardoino, in New York.

The marketing entrepreneur Peter Vincer arranged this meeting and subsequently submitted a proposal covering public relations, branding, and lobbying activities to Tether.

According to documents reviewed by The Wall Street Journal, the initial proposal listed Nxum as the company to carry out the work.

In the end, a revised agreement was promoted by the marketing company Notorious, and the final contract removed any references to lobbying.

According to a contract that lasted for at least two years, Tether agreed to pay $415,000 per month over a period of six months.

On May 11, 2025, Tether transferred the first installment of $2.49 million through the cryptocurrency exchange Bitfinex, which also belongs to the same parent company.

Vincer retained $498,000 and transferred the remaining amount to a wallet associated with Nxum. According to payment records, these funds were subsequently distributed among the company's three partners.

Two additional transfers of $2.49 million each arrived in the wallet controlled by Nxum in December 2025 and April 2026, by which time Hines had already left the White House.

Some of the funds went towards Vincer, while the remaining amount was distributed among the partners.

According to the investigation and calculations, Nxum obtained approximately 6.3 million US dollars through this arrangement.

Vincer told The Wall Street Journal that he was merely an intermediary, and after Hines left the government, he directly handed over the contract to Nxum.

He raised objections to the final amount he received, while Nxum denied his claims regarding the payment dispute.

Bo Hines once advocated for a longer compliance period for stablecoins

During the negotiation process of GENIUS Act, Hines supported giving cryptocurrency platforms three years to stop providing stablecoins that do not meet the new federal requirements.

The initially proposed period was 18 months, which is a shorter timeline that some Democratic lawmakers and American domestic stablecoin companies prefer.

People familiar with the negotiations told The Wall Street Journal that Hines once encouraged lawmakers to double the compliance period.

The final 36-month period provides more time for foreign stablecoin issuers, including Tether, before non-compliant tokens will be subject to restrictions by American platforms.

The bill also includes another option that allows foreign stablecoin issuers to operate within approved regulatory jurisdictions.

Critics describe this clause as a concession to Tether, however, Nxum insists that the longer compliance period is the result of multi-party negotiations.

The company stated that Tether can lobby for its preferred regulatory treatment without having to establish a financial relationship with Nxum.

Meanwhile, information reviewed by The Wall Street Journal indicates that Hines communicated with his business partners regarding this legislation during his tenure in government.

In June 2025, when the bill faced opposition from some Republican members of the House of Representatives, Hines shared political rhetoric within a Signal group that included Nxum as a partner.

Nxum indicates that these communications involve publicly available information and do not constitute any commercial transactions involving the company.

President Trump ultimately secured the support of opponents within the Republican Party, and on July 18, 2025, GENIUS Act signed it into law.

Hines takes over Tether's US stablecoin business

Hines announced his departure from the White House in August 2025, just a few weeks after GENIUS Act took office.

On August 19th, Tether appointed Hines as a strategic advisor, responsible for its expansion efforts in the United States. crypto.news reported on this matter at that time.

His responsibilities include establishing relationships with policymakers and industry participants as the company prepares to operate under the new regulatory framework.

In September 2025, Tether appointed Hines as the CEO of USAT. USAT is a stablecoin pegged to the US dollar that is part of their plan and is subject to US regulation.

The company has chosen Anchorage Digital Bank as the issuer of this token, and Cantor Fitzgerald is responsible for managing its reserves.

Tether was followed by the launch of USAT in January 2026, as an independent product separate from USDT; USDT remains its main international stablecoin.

The design of USAT is centered around the requirements of GENIUS Act regarding reserve support, regulatory oversight, and redemption.

By July 2026, Tether had extended USAT to Celo, which is the second blockchain it supports following Ethereum.

After Celo goes live, users will be able to mint and redeem tokens natively, and they will also be able to use USAT to pay for network transaction fees.

At that time, the market value of USAT was approximately $185 million.

Tether also led a $7 million financing round for Pact Labs, which is developing salary and payment services using USAT.

The regulatory status of Tether remains unclear.

The implementation of GENIUS Act is still in the process of federal rule-making, and several requirements for stablecoin issuers are still awaiting final regulations.

A review of the implementation of the bill in August 2026 found that federal agencies failed to complete the required regulations by the July deadline.

The Federal Reserve is targeting November 2026 to complete its framework.

Since USDT is issued by a company registered in the British Virgin Islands, Tether's international operations also face other issues.

The law allows foreign stablecoin issuers to provide services to US companies under certain conditions, including when the Treasury Department determines that their home jurisdiction has comparable regulatory oversight.

As of August 2026, the Ministry of Finance has not made such a determination regarding the British Virgin Islands.

The restriction plan for non-compliant stablecoins provided by US platforms will take effect in July 2028.

In addition, a Wall Street Journal investigation also raised questions about Hines holding financial interests in Nxum during their tenure in government.

Cynthia Brown, a senior ethics advisor at the Washington-based "Government Responsibility and Civic Ethics Organization," told the media that federal officials generally should not be involved in government affairs that involve their own financial interests.

Nxum insists that Hines has distanced themselves from the company's business, and their shareholding does not require divestiture in accordance with applicable ethical rules.

The White House stated that it expects government officials to comply with federal ethics laws. Tether did not respond to The Wall Street Journal's request for comment.

The investigation also revealed more financial transactions involving Nxum after Hines entered the private sector.

According to an investor presentation reviewed by The Wall Street Journal, Nxum once circulated a plan for Tether to acquire a 25% stake in the consulting firm for $56 million.

The company also proposes to sell an additional 10% of its shares to external investors, while the founders will retain 65% of the shares.

Nxum also participated in the Fellowship PAC launched in September 2025. This political action committee supports cryptocurrencies and is chaired by Jesse Spiro, who is in charge of government affairs for the Tether government.

Federal disclosure documents show that this PAC has raised at least $11 million from Cantor Fitzgerald and other donors.

According to records reviewed by The Wall Street Journal, the committee paid more than $6.5 million to Nxum for advertising and related services.