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 manages Tether's U.S. finances, has faced questioning 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, a leading global stablecoin issuer, whether it financed Lutnick's transfer of his financial-services company through trusts tied to his children when he complied with government ethics requirements after taking office. The lawmakers expressed concern that if the reports are accurate, they 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, which first appeared in Bloomberg News. Congress, with the administration's support, recently passed a law to govern stablecoin issuers like Tether. The senators emphasized that Lutnick must make decisions in the best interest of the American public, not in the financial interest of his family or Tether. Representatives for 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 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 for Trump. Cantor has been a significant donor to the Fellowship PAC, a political action committee that has spent millions supporting Republicans in various races.