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"Fox News Sunday" anchor Chris Wallace said new revelations of the Democrats' funding of a controversial anti-Trump dossier are a damaging development for Hillary Clinton.

Fox News confirmed this week that the dossier, which was published by Buzzfeed, was bankrolled by Marc Elias, a lawyer representing the DNC and the Clinton campaign.

Millions were paid to a political consulting firm, Fusion GPS, which then hired a former British intelligence officer, Christopher Steele, to dig up dirt on Trump's alleged connections to Russia.

"It seems that their concern about getting foreign countries involved in interfering in the election ... was fine if it was them doing it to Trump [but] not so good if it was potentially, allegedly Trump doing it to them," Wallace said on "Outnumbered Overtime."

The dossier has been cited repeatedly by Democrats who have claimed the Trump campaign colluded with Russia against Clinton.

Wallace pointed out that the Russians may well have been playing both sides, with the ultimate goal of sowing "disorder" in the United States and discrediting both candidates.

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He said after the Charlottesville, Va., violence, Russia-linked social media accounts were putting out inflammatory content directed at both sides.

Watch the discussion above and don't miss Ohio Gov. John Kasich (R) this weekend on "Fox News Sunday," at 2pm and 10pm ET on Fox News Channel.

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