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

U.S. Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which handles Tether's U.S. finances, is facing questions from Senate Democrats about reports that his children's trust received a loan from Tether. This loan allegedly helped finance Lutnick's divestment of his company stake to his children, as required by government ethics rules upon taking his Cabinet position. Senators Elizabeth Warren and Ron Wyden asked Tether, a leading stablecoin issuer, if it provided financial assistance for Lutnick's multibillion-dollar transfer of his company stake to trusts tied to his adult children. The lawmakers expressed concern that if the reports are accurate, they would raise serious questions about the relationship between Secretary Lutnick and Tether, as well as Tether's potential influence on Lutnick's policy decisions. The inquiry follows a new law governing stablecoin issuers, including Tether, which was enacted with the help of Congress and the Trump administration last year. Lutnick and Tether CEO Ardoino were both present at the White House signing of the law. The senators emphasized the importance of making decisions in the best interest of the American public, rather than in the financial interest of Lutnick's family or Tether. Representatives for the Department of Commerce and Tether did not immediately respond to requests for comment on the letters. Lutnick's company, Cantor Fitzgerald, is now led by his sons Brandon and Kyle. Tether, headquartered in El Salvador, has been expanding its U.S. presence with the launch of its USAT stablecoin and a U.S. arm led by Bo Hines, a former crypto adviser to Trump. Cantor Fitzgerald has been a significant donor to the Fellowship PAC, a political action committee that has spent millions supporting Republicans in various elections.