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

U.S. Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which handles Tether's U.S. finances, is under scrutiny from Senate Democrats due to reports of a loan from Tether to a trust associated with his children, allegedly to facilitate Lutnick's divestment of his company stake to his children. Senators Elizabeth Warren and Ron Wyden have questioned the leading stablecoin issuer about its potential involvement in financing Lutnick's 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, as well as Tether's influence on Lutnick's policy decisions. The inquiry comes after Congress passed a law last year to regulate stablecoin issuers, including 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 for the Department of Commerce and Tether have not immediately responded to requests for comment. 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 President Trump.