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

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 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, ranking members of the Senate Banking and Finance Committees, respectively, have asked Tether about its potential role in financing 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, they would raise serious questions about the relationship between Secretary Lutnick and Tether, and the potential influence of Tether on Lutnick's policy decisions. This development comes after Congress passed a new law last year to regulate stablecoin issuers like Tether, with CEO Ardoino attending the White House signing ceremony and Lutnick being a member of 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's or Tether's financial interests. Representatives for the Department of Commerce and Tether have not immediately responded to requests for comment on the letters. Lutnick's Cantor is now led by his sons Brandon and Kyle, while Tether, headquartered in El Salvador, is pursuing a US strategy with the launch of its USAT stablecoin and a US arm led by Bo Hines, a former crypto adviser to Trump.