US Senator Warren Challenges Commerce Secretary Lutnick Over Alleged Tether Loan to Family Members

Senate Democrats have questioned U.S. Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which handles Tether's US finances, about 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 stablecoin issuer, whether it financed Lutnick's transfer of his financial-services company through trusts tied to his children, following his compliance with government ethics requirements after taking office. The lawmakers expressed concerns about the potential influence of Tether on Lutnick's policy decisions, stating that if the reports are accurate, they would raise serious questions about the relationship between Lutnick and Tether. The inquiry follows a new law governing stablecoin issuers, including Tether, which was signed into law last year with the support of Congress and the Trump administration. The senators emphasized the importance of making decisions in the best interest of the American public, rather than personal or financial interests. Representatives from the Department of Commerce and Tether have not immediately responded to requests for comment. Lutnick's company, Cantor, is now led by his sons, Brandon and Kyle Lutnick. Tether has been expanding its US presence, launching its USAT stablecoin and establishing a US arm led by Bo Hines, a former crypto adviser to Trump. Cantor has also been a significant donor to the Fellowship PAC, a political action committee that has spent millions supporting Republicans in various elections.