Senator Warren Challenges Commerce Secretary Lutnick Over Alleged Tether Loan to Family Members

US Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which handles Tether's US finances, is facing scrutiny from Senate Democrats over reports that his family received a loan from Tether to facilitate his divestment of company shares to his children. Senators Elizabeth Warren and Ron Wyden have asked Tether, a major stablecoin issuer, whether it provided financial assistance for Lutnick's multibillion-dollar transfer of his company stake to trusts linked to his adult children, following his compliance with government ethics requirements upon taking office. The lawmakers expressed concern that such a loan, if true, would raise questions about the relationship between Secretary Lutnick and Tether, and the potential influence of Tether on Lutnick's policy decisions. This inquiry comes after Congress passed a law governing stablecoin issuers, including Tether, with CEO Ardoino attending the White House signing ceremony. Lutnick has been a member of the President's Working Group on Digital Assets, shaping US crypto policy. The senators emphasized the importance of making decisions in the best interest of the American public, rather than personal or financial interests. Representatives from the Department of Commerce and Tether have not immediately responded to requests for comment. Lutnick's company, Cantor, is now led by his sons, Brandon and Kyle. Tether, headquartered in El Salvador, has been expanding its US presence with the launch of its USAT stablecoin and a US arm led by Bo Hines, a former crypto adviser to Trump. Cantor has been a significant donor to the Fellowship PAC, a political action committee supporting Republicans in various races, with expenditures made through a media firm co-founded by Hines and his father.