Former Trump Crypto Advisor Under Investigation for Potential Benefits from GENIUS Act

Former Trump crypto advisor under investigation for potential benefits from the GENIUS Act. Photo: Reuters

Bo Hines Faces Scrutiny Over Tether Connection

Bo Hines, former cryptocurrency advisor to U.S. President Donald Trump, is under scrutiny for a potential conflict of interest as his co-founded company received $6.3 million from Tether while he was advocating for the stablecoin legislation known as the GENIUS Act.

According to an investigation by The Wall Street Journal (WSJ), Hines still holds a one-third stake in Nxum and updated colleagues on the progress of the legislation while working at the White House.

Nxum received funds from an agreement with Tether, the issuer of the USDT stablecoin, to implement branding and public relations strategies. Notably, the first payment was made while Hines was still in office.

WSJ found that he had exchanged messages with partners via Signal about the progress of the GENIUS Act, urging them to pressure Republican lawmakers opposing the bill, accusing these lawmakers of going against the President and being influenced by Coinbase and a16z.

The controversy lies in the fact that Hines was both promoting policies that directly impact the stablecoin industry while maintaining financial interests in a company that has contracts with Tether. WSJ also mentioned his push to extend compliance deadlines, a move that could provide more preparation time for stablecoin issuers.

Nxum denies that Hines was aware of or involved in business dealings with Tether while in office. The company also asserts that he did not receive money from Tether during his tenure.

After leaving the White House in August 2025, Hines joined Tether as a strategic advisor and became the head of the company's U.S. division in September of the same year. The GENIUS Act was signed into law by President Trump on July 18, 2025, paving the way for the U.S. to establish a federal regulatory framework for payment stablecoins.

The financial dealings related to Nxum continue to attract attention. According to records from the Federal Election Commission (FEC) cited by WSJ, the Fellowship PAC - a political organization chaired by Jesse Spiro, Tether's head of government relations - has spent a total of $6.55 million on Nxum Group through five payments from January to April 2026. The expenditures are primarily recorded for campaign advertising related to policy.

Stablecoin Legislation Delayed in Implementation

The GENIUS Act sets requirements for licensing, reserve assets, and oversight for payment stablecoin issuers, expected to take effect in January 2027.

However, the U.S. government missed the deadline to finalize the legal framework in July, causing the process of specifying obligations for stablecoin issuers to continue to drag on.

Federal agencies are racing to develop detailed regulations before November 2026. Among them, the U.S. Department of the Treasury is clarifying the conditions for issuing, offering, and distributing stablecoins; the FDIC is proposing standards for reserves, capital, and token buybacks; the Fed is developing a supervisory mechanism and approval process for banks issuing stablecoins; and other financial regulators are pushing for KYC and anti-money laundering requirements.

The Hines case has also reignited the debate over the revolving door phenomenon - officials leaving public office to join businesses in sectors they once regulated. Recently, former Commodity Futures Trading Commission (CFTC) commissioner Summer Mersinger also moved to lead the Blockchain Association; Solidus Labs appointed Kevin Webb, a former senior advisor at the CFTC, as vice president of policy.

The fact that a former official joins a private company does not imply wrongdoing. However, when a policymaker still holds shares in a company that has business relations with entities affected by that policy, questions about conflicts of interest cannot be dismissed.

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