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

US Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which handles Tether's US finances, is facing questions from Senate Democrats regarding reports that his children's trust received a loan from Tether to facilitate his divestment of company shares to them. Senators Elizabeth Warren and Ron Wyden have asked Tether, a leading stablecoin issuer, whether it assisted in financing Lutnick's multibillion-dollar stake transfer through his children's trusts, following his compliance with government ethics requirements after assuming his Cabinet position. The lawmakers expressed concern that if the loan reports are accurate, it could raise serious questions about Lutnick's relationship with Tether and the potential influence on his policy decisions. They emphasized the importance of making decisions in the best interest of the American public, rather than in the financial interest of his family or Tether. The letters were sent in response to reporting on the loans, which first appeared in Bloomberg News. The development comes after Congress passed a new law last year to regulate stablecoin issuers, including Tether, with CEO Ardoino attending the White House signing ceremony. Lutnick, a member of the President's Working Group on Digital Assets, was also present at the event. Representatives for the Department of Commerce and Tether have not immediately responded to requests for comment on the letters. 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 for Trump. Cantor, now under the leadership of Lutnick's sons Brandon and Kyle, has been the largest donor to the Fellowship PAC, a political action committee that has spent millions supporting Republicans in various Senate, House, and governor races.