Bo Hines, who served as US President Donald Trump’s crypto adviser before joining Tether, allegedly maintained a one-third ownership in Nxum, an investment firm he co-founded, while advocating for stablecoin legislation in Washington. The Wall Street Journal reported that Nxum profited from a $6.3 million deal with Tether, the company responsible for the leading USDt (USDT) stablecoin, as the US Congress moved forward with regulating digital assets.
Stablecoin bill and Tether connections
The GENIUS Act, officially known as the Guiding and Establishing National Innovation for US Stablecoins Act, was under consideration as Hines pushed lawmakers to support stablecoin rules. According to reports, Nxum received its first payment from Tether while Hines was actively working at the White House.
While serving as a crypto adviser, Hines reportedly used the Signal messaging app to keep Nxum partners updated on the GENIUS Act’s progress. He also encouraged his company to portray Republican opponents of the bill as obstructing presidential policy and cooperating with industry competitors, including Coinbase and the venture capital firm a16z.
During his tenure, Hines is reported to have urged his associates to label lawmakers who resisted the bill as “undermining the president” and influenced messaging against perceived industry rivals.
In August 2025, Hines became a strategic adviser at Tether before stepping up as CEO of Tether’s US division the following month.
Allegations of personal gain from public policy
The arrangement between Hines and Tether has reignited allegations that Trump administration insiders, including the president’s family, have directly benefited from cryptocurrency legislation. Trump reportedly disclosed $1.4 billion in digital asset-related earnings in 2025, alongside millions in income for his family’s crypto company, World Liberty Financial, which issues the USD1 stablecoin.
Mini dictionary: World Liberty Financial, the Trump family’s digital assets company, is the issuer of USD1, a stablecoin reportedly involved in the president’s personal earnings from the crypto industry.
The GENIUS Act was enacted in July 2025 during a White House ceremony that included top cryptocurrency industry leaders. Trump acknowledged Hines for his involvement in the process during the signing.
Upcoming regulation and enforcement
Although signed into law in 2025, the GENIUS Act’s provisions will not take effect until January 2027, pending final rules from US federal agencies. The law tasks the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Treasury Department with oversight responsibilities for stablecoin activity.
Tether has yet to publicly address detailed allegations about its payments to Hines and Nxum or possible conflicts of interest.
Crypto industry’s revolving door
The trend of top policymakers moving into key roles within the digital asset industry continues. In addition to Hines’s move to Tether, Summer Mersinger, a previous commissioner at the US Commodity Futures Trading Commission (CFTC), resigned several years ahead of her term’s conclusion to become the CEO of the Blockchain Association, a group advocating for pro-crypto policy in Washington.
Solidus Labs, a fintech and crypto compliance company, announced on Wednesday that Kevin Webb, former CFTC senior counsel and adviser to Commissioner Brian Quintenz, will be joining as vice president of policy. This follows the 2022 move by former CFTC Commissioner Dawn Stump to Solidus as a strategic adviser.
This pattern reinforces concerns about the so-called “revolving door” between regulatory agencies and the cryptocurrency sector.
The continued hiring of former regulators and advisers by major crypto firms, including Tether and Solidus Labs, has fueled debate about the influence of digital asset companies in shaping US policy.
