A powerful group in the United States Senate has launched an inquiry into stablecoin firm Tether. On October 22, 2026, Senator Richard Blumenthal demanded detailed records from Tether. He also asked for records from a consulting firm named Nxum Group. The inquiry looks at big payments. More than six million dollars changed hands. The cash moved between the two firms over several months.
Senator Blumenthal is the top Democrat on the Senate panel. The group leads major investigations. He sent formal letters to Tether chief Paolo Ardoino. He also sent a letter to Nxum leader Todd Hines. The letters ask for contracts. They ask for emails. They also request transaction logs. The committee set a firm deadline of November 6, 2026. The Senate group wants to know how the deals were made.
The review centers on Bo Hines. He is a former college football player. He later joined the White House. In late 2024, Hines was named as a digital asset policy aide. He worked for the federal government. He helped write new stablecoin rules. He advised the White House team. Before entering public service, Hines helped start Nxum Group. Reports show he kept a one-third stake in the firm. He held the stake while working in his government post.
According to Senate records, Tether agreed to pay Nxum over four hundred thousand dollars each month. The contract was signed in May 2025. It covered brand work and public relations advice. Over the next few months, Tether sent more than six million dollars to Nxum. During that same period, Hines worked on federal stablecoin bills.
Senator Blumenthal expressed deep concern about these money ties. He stated that paying millions of dollars to a firm tied to a policy aide raises big legal questions. Blumenthal warned that the payments could break federal ethics rules. They might also break bribery laws. The senator asked why Tether used an outside marketing firm as a middle step. The marketing firm got paid first. Then it sent the cash to Nxum.
Tether defended its past actions in public comments. The firm stated that it followed all legal rules. Tether hired outside legal experts to review the consulting contracts. According to Tether, the independent lawyers found zero proof of bad acts. They also found no legal violations. Company leaders said they worked to build clear rules for digital cash.
Bo Hines left his White House job in August 2025. Right after leaving his government role, Hines joined Tether. The firm named him as the head of its American team. In his new job, Hines leads efforts to grow regulated stablecoin tools inside the United States. His fast move to an industry post drew sharp words. Senate lawmakers raised quick concerns.
The Senate inquiry comes at a busy time. Washington is debating major crypto rules. Lawmakers have spent months working on the GENIUS Act. This bill creates a national framework for dollar-backed coins. Critics argue that certain parts of the bill give special perks to foreign coin firms. Senator Blumenthal wants to know if Nxum lobbied officials. He asks if they sought special terms. He wants to know if Tether asked for special favors.
The Senate panel requested a complete list of all payments made by Tether. The request includes wallet addresses. It includes bank records. It also asks for internal chat logs. Lawmakers asked if Tether plans to buy a twenty-five percent stake in Nxum. The reported deal would be worth fifty-six million dollars.
Tether is the largest stablecoin firm in crypto. It is a giant in the global industry. Its main dollar token holds over one hundred billion dollars in total supply. Because of its massive size, government officials track its work with great care. The Senate committee plans to review the e quested files before taking action. Regulators want to ensure that all crypto lobbying follows federal ethics laws. The outcome of the probe could shape future stablecoin rules.