US Senators Query Commerce Secretary Over Alleged Tether Loan to Family

US Commerce Secretary Howard Lutnick has faced questioning from Senate Democrats over reports that a trust connected to his children received financing from Tether, allegedly to facilitate Lutnick's divestment of his stake in Cantor Fitzgerald, which handles Tether's US finances. Senators Warren and Wyden have asked Tether whether it provided financial assistance for Lutnick's multibillion-dollar transfer of his company stake to trusts tied to his adult children, as he complied with government ethics requirements upon taking office. The lawmakers expressed concern that if the reports are accurate, they would raise serious questions about Lutnick's relationship with Tether and its potential influence on his policy decisions. This comes after Congress introduced a new law governing 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 public, rather than his family or Tether. Representatives from the Department of Commerce and Tether have not immediately responded to requests for comment.