Senator Richard Blumenthal has asked Tether CEO Paolo Ardoino to provide records concerning a reported $6.3 million agreement between the stablecoin issuer and Nxum, a marketing company co-founded by former White House crypto adviser Bo Hines. The request adds congressional scrutiny to Tether’s dealings with people connected to the Trump administration and to lobbying around US stablecoin legislation.
Blumenthal requests contracts and communications
Blumenthal, the Democratic ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter to Ardoino on Thursday seeking documents and information related to Tether’s relationship with Nxum. The request covers contracts, payments, communications and lobbying activity involving the companies and Hines.
The inquiry followed a Wall Street Journal report that Tether had entered into the $6.3 million arrangement with Nxum. According to Cointelegraph, Blumenthal said the subcommittee’s examination was focused on what he described as possible self-enrichment and self-dealing involving the Trump administration and cryptocurrency firms.
Blumenthal also raised questions about Hines’ role in the alleged lobbying effort. He said Hines retained a one-third ownership interest in Nxum while serving in the administration and worked with the company through encrypted messaging applications. The senator said those communications involved lobbying, advocacy and efforts to pressure lawmakers who opposed or sought changes to pending stablecoin legislation.
The letter further alleged that Tether directly coordinated with Nxum over lobbying connected to the GENIUS Act, legislation intended to regulate stablecoins in the United States. Blumenthal said messages reportedly showed Ardoino instructing Nxum to “obliterate” opponents of the legislation. The senator characterized the arrangement as raising ethical and legal concerns because Hines had a direct role in cryptocurrency policy while maintaining an interest in the company receiving payments.
Hines’ government and Tether roles
Hines served as executive director of the President’s Council of Advisers on Digital Assets from January through August 2025. After leaving the White House, he joined Tether as a strategic adviser and later became chief executive of Tether US.
The source material also identifies another former administration crypto adviser in the Nxum connection. Harry Jung left his government position in July 2026 and joined Nxum as a managing director the following month.
Tether disputed the implication that the reported arrangement involved wrongdoing. A company spokesperson said Tether was aware of the allegations and that external counsel had found no evidence of wrongdoing after an earlier in-depth internal investigation.
Blumenthal’s request is an inquiry by the Senate subcommittee’s Democratic ranking member; the source material does not state that it represents a final finding of misconduct. It does, however, place the company’s reported dealings with Nxum and former administration officials under formal congressional scrutiny.
Crypto connections enter midterm political debate
The investigation comes as Donald Trump, members of his family and administration officials face broader scrutiny over financial benefits linked to cryptocurrency policies and legislation over which they have influence. The source material says the president disclosed $1.4 billion in earnings from crypto-related investments in 2025.
The balance of power in Congress could affect the scope of future investigations. Blumenthal currently has limited authority as the Democratic ranking member of the subcommittee, but a change in party control of the House or Senate after the 2026 midterm elections could give him and other Democrats greater investigative authority.
Election Day in the United States is scheduled for Nov. 3. As of Friday, event contracts cited by the source favored Democrats regaining control of both chambers in 2027. Kalshi contracts showed a 92% chance of a Democratic House majority and a 68% chance of a Democratic Senate majority. These figures reflect the prediction-market contracts cited in the source, rather than an election result.
Current crypto market picture
Moneyiar data at 08:03 on Oct. 24, 2026, showed Ethereum at $2,371.69, down 1.18% over 24 hours and 2.45% over seven days. Tether USDt was priced at $0.99875, up 0.02% over 24 hours and 0.01% over seven days.
- Ethena was trading at $0.18986, down 5.09% in 24 hours and 3.86% over seven days.
- OFFICIAL TRUMP was at $1.68724, down 5.27% over 24 hours and 6.55% over seven days.
A stablecoin is a cryptocurrency designed to maintain a relatively stable value, commonly against a fiat currency such as the US dollar. Tether USDt’s near-$1 price in the Moneyiar snapshot reflects that design, although the quoted value was slightly below one dollar at the stated time.
