Key Takeaways
- • Per a Wall Street Journal report, former Trump crypto adviser Bo Hines kept a one-third stake in Nxum, the investment company he co-founded, while helping push the GENIUS Act through Congress.
- • Nxum received $6.3 million as part of a deal with stablecoin issuer Tether, with the first payment made while Hines was still serving in government.
- • Hines reportedly stayed in contact with Nxum partners via Signal, updating them on GENIUS Act progress during his White House tenure.
- • Hines joined Tether as a "strategic adviser" in August 2025 and became CEO of its US arm the following month.
- • The report renews scrutiny of the "revolving door" between US policymakers and crypto companies, though Tether had not responded to Cointelegraph's request for comment.
Summary
A Wall Street Journal report published on a Wednesday alleges that Bo Hines, previously a crypto adviser to US President Donald Trump, retained a one-third stake in Nxum, an investment company he co-founded, while he pushed US lawmakers to pass the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. According to the report, Nxum received $6.3 million as part of a deal with Tether, the issuer of the USDT stablecoin, and the first payment was made while Hines was still serving in government.
The WSJ reported that Hines kept in contact with his Nxum partners, updating them on the legislation's progress through the Signal app while he served as Trump's crypto adviser. The report also states that he urged a Nxum partner to characterize Republican lawmakers opposing the bill as "undermining the president" and as "bought and paid for by democratic shills like Coinbase and a16z."
Hines joined Tether as a "strategic adviser" in August 2025 and became CEO of its US arm the following month. The GENIUS Act passed Congress and was signed into law in July 2025, at a ceremony attended by crypto executives, including those from Tether and Circle; Hines attended and was recognized by Trump. The law requires implementing rules from the Office of the Comptroller of the Currency, the FDIC, the Federal Reserve Board and the Treasury Department, and is scheduled to take effect in January 2027.
The reported arrangement adds to accusations that Trump, his family and staff personally benefit from legislation they help shape. The president disclosed earning $1.4 billion from digital asset-related investments in 2025, including millions from his family's World Liberty Financial, which issues the USD1 stablecoin. Cointelegraph reached out to Tether for comment but had not received a response at publication.
The story also highlights the broader movement of former officials into digital asset firms. Summer Mersinger resigned from the CFTC three years before her term ended to become CEO of the Blockchain Association, and Kevin Webb, a former CFTC senior counsel, was announced as vice president of policy at Solidus Labs.
The WSJ reported that Hines kept in contact with his Nxum partners, updating them on the legislation's progress through the Signal app while he served as Trump's crypto adviser. The report also states that he urged a Nxum partner to characterize Republican lawmakers opposing the bill as "undermining the president" and as "bought and paid for by democratic shills like Coinbase and a16z."
Hines joined Tether as a "strategic adviser" in August 2025 and became CEO of its US arm the following month. The GENIUS Act passed Congress and was signed into law in July 2025, at a ceremony attended by crypto executives, including those from Tether and Circle; Hines attended and was recognized by Trump. The law requires implementing rules from the Office of the Comptroller of the Currency, the FDIC, the Federal Reserve Board and the Treasury Department, and is scheduled to take effect in January 2027.
The reported arrangement adds to accusations that Trump, his family and staff personally benefit from legislation they help shape. The president disclosed earning $1.4 billion from digital asset-related investments in 2025, including millions from his family's World Liberty Financial, which issues the USD1 stablecoin. Cointelegraph reached out to Tether for comment but had not received a response at publication.
The story also highlights the broader movement of former officials into digital asset firms. Summer Mersinger resigned from the CFTC three years before her term ended to become CEO of the Blockchain Association, and Kevin Webb, a former CFTC senior counsel, was announced as vice president of policy at Solidus Labs.
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