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

U.S. Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which handles Tether's U.S. finances, has faced questioning from Senate Democrats regarding 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, ranking members of the Senate Banking and Finance Committees, respectively, have asked Tether about its potential role in financing Lutnick's transfer of his financial services company through trusts linked to his adult children, following his compliance with government ethics requirements after taking office. The lawmakers expressed concern that if the reports are accurate, they would raise serious questions about Lutnick's relationship with Tether and the potential influence on his policy decisions. The inquiry follows a new law governing stablecoin issuers, including Tether, which was enacted with the support of Congress and the Trump administration. 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 Lutnick. Tether, headquartered in El Salvador, is expanding its U.S. presence with the launch of its USAT stablecoin and a U.S. subsidiary led by Bo Hines, a former crypto adviser to Trump.