Tether Faces Senate Probe Over Payments
Stablecoin issuer Tether is facing United States Senate scrutiny over reported multimillion-dollar payments made to a consulting firm co-owned by a former White House crypto adviser, according to CryptoSlate. Senator Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, has demanded records regarding the payments to consulting firm Nxum.
The inquiry focuses on reports that Tether sent more than $6 million to Nxum while Bo Hines held an ownership stake in the business and helped shape federal stablecoin policy. Blumenthal cited reports indicating that Tether agreed in May 2025 to pay Nxum $415,000 per month for strategic services while Hines served as executive director of the digital asset advisory council. Hines later left the White House and became chief executive of Tether’s US stablecoin business.
The controversy centers on the GENIUS Act, which was signed into law in July 2025 to establish a federal regulatory framework for dollar-backed stablecoins. Blumenthal alleged that Hines participated in discussions about the legislation while his business partners coordinated lobbying with Tether executives, and advocated for provisions that would benefit offshore issuers like Tether.
According to the senator, Tether initially routed payments through an intermediary marketing company before contracting directly with Nxum. The subcommittee has requested transaction records, cryptocurrency wallet addresses, and communications to clarify the arrangement. Blumenthal has not established that Tether or Hines violated federal law, and the inquiry represents a minority request from subcommittee Democrats.
Based on reporting by cryptoslate.com.
