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

U.S. Commerce Secretary Howard Lutnick has been queried by Senate Democrats regarding reports that a trust connected to his children received financing from Tether, allegedly to facilitate Lutnick's divestment of his stake in Cantor Fitzgerald to his children. Senators Elizabeth Warren and Ron Wyden have asked Tether, a leading stablecoin issuer, whether it provided financial assistance for Lutnick's multibillion-dollar transfer of his company stake to trusts tied to his adult children, following his compliance with government ethics requirements after assuming the Cabinet position. The lawmakers expressed concerns that if the reports of the loan are accurate, it would raise serious questions about the relationship between Secretary Lutnick and Tether, as well as the potential influence of Tether on Lutnick's policy decisions. The inquiry follows the introduction of a new law last year to regulate stablecoin issuers, including Tether, and Lutnick's involvement in the President's Working Group on Digital Assets. 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 responded to requests for comment on the matter. Tether has been expanding its presence in the U.S. with the launch of its USAT stablecoin and the establishment of a U.S. arm, while Cantor Fitzgerald is now led by Lutnick's sons, Brandon and Kyle.