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

Recently, U.S. Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which manages Tether's U.S. finances, has faced questioning from Senate Democrats regarding reports that his children's trust received a loan from Tether, allegedly to facilitate Lutnick's divestment of his company stake to his children. Senators Elizabeth Warren, ranking Democrat on the Senate Banking Committee, and Ron Wyden, leading Democrat on the Finance Committee, have asked Tether, the world's largest stablecoin issuer, whether it financed Lutnick's multibillion-dollar transfer of his financial-services company through trusts tied to his adult children, as he complied with government ethics requirements after taking office. The lawmakers expressed concern, stating, 'If these reports are accurate, they would raise serious questions about the relationship between Secretary Lutnick and Tether, and the influence of Tether on Mr. Lutnick's policy decisions.' The letters were sent in response to reporting by Bloomberg News about the unspecified loans. Last year, Congress, with the help of the Trump administration, passed a law governing stablecoin issuers like Tether. CEO Ardoino attended the White House signing of the law, known as the GENIUS Act, alongside Lutnick, who is a member of the President's Working Group on Digital Assets, driving U.S. crypto policy. The senators emphasized to Lutnick that 'it is critical that you make decisions because they are in the best interest of the American public, not in the financial interest of your family or Tether.' Representatives for the Department of Commerce and Tether have not immediately commented on the letters. Lutnick's company, Cantor, is now led by his sons Brandon and Kyle. Tether, based in El Salvador, is expanding its U.S. presence with the launch of its USAT stablecoin and a U.S. arm led by former Trump crypto adviser Bo Hines. Cantor is the largest donor to the Fellowship PAC, a political action committee that has spent millions supporting Republicans in various elections, with expenditures made through a media firm co-founded by Hines and his father.