Senator Warren Queries Commerce Secretary Lutnick Over Alleged 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 over reports that a trust linked to his children 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 provided financing for Lutnick's multibillion-dollar 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, and the potential influence of Tether on Mr. Lutnick's policy decisions. They stressed that it is crucial for Lutnick to make decisions in the best interest of the American public, rather than in the financial interest of his family or Tether. The inquiry comes after Congress, with the support of the Trump administration, passed a new law governing stablecoin issuers, including Tether, last year. Representatives for the Department of Commerce and Tether have not immediately responded to requests for comment on the matter.