Senator Warren Grills Commerce Secretary Lutnick Over Tether Loan to Family Members

US Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which handles Tether's US finances, is facing questions from Senate Democrats regarding a reported loan from Tether to a trust benefiting his children. The loan allegedly helped finance Lutnick's transfer of his company stake to his children as part of his compliance with government ethics requirements after taking office. Senators Elizabeth Warren and Ron Wyden, ranking members of the Senate Banking and Finance Committees, respectively, have asked Tether to clarify its role in the transaction. The lawmakers expressed concerns that the loan, if true, could raise questions about Lutnick's relationship with Tether and its potential influence on his policy decisions. This development comes after Congress passed a new law governing stablecoin issuers like Tether, with CEO Ardoino attending the White House signing ceremony. The senators emphasized the importance of Lutnick making decisions in the best interest of the American public, rather than his family or Tether. Representatives from the Department of Commerce and Tether have not responded to requests for comment. Lutnick's company, Cantor, is now led by his sons, Brandon and Kyle. Tether, headquartered in El Salvador, is expanding its US presence with the launch of its USAT stablecoin and a US arm led by former Trump crypto adviser Bo Hines.