Senator Warren Challenges Commerce Secretary Lutnick Over Tether's Alleged Loan to His Family

U.S. Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which manages Tether's U.S. finances, is facing scrutiny from Senate Democrats over reports that his children's trust received a loan from Tether to facilitate Lutnick's divestment of his company stake to his children. Senators Elizabeth Warren and Ron Wyden have asked Tether, the leading global stablecoin issuer, whether it provided financial assistance for Lutnick's multibillion-dollar transfer of his financial services company through trusts tied to his adult children, following his compliance with government ethics requirements after taking office. The lawmakers expressed concern that if the reports are accurate, it would raise serious questions about the relationship between Secretary Lutnick and Tether, and the potential influence of Tether on Mr. Lutnick's policy decisions. The letters responded to reporting about the loans of unspecified amounts, first published in Bloomberg News. Last year, Congress, with the support of the Trump administration, passed a new law governing stablecoin issuers, including Tether. CEO Ardoino attended the White House signing of the law, known as the GENIUS Act, alongside Lutnick, who is a member of the President's Working Group on Digital Assets. The senators emphasized the importance of making decisions in the best interest of the American public, rather than in the financial interest of Lutnick's family or Tether. Representatives from the Department of Commerce and Tether did not immediately respond to requests for comment. Lutnick's company, Cantor, is now led by his sons, Brandon and Kyle Lutnick. Tether, headquartered in El Salvador, has been expanding its U.S. presence with the launch of its USAT stablecoin and a U.S. arm led by Bo Hines, a former crypto adviser to Trump. Cantor is the largest donor to the Fellowship PAC, a relatively new political action committee that has spent millions of dollars supporting Republicans in various Senate, House, and governor races.