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

Senate Democrats have raised questions about US Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which handles Tether's US finances, regarding reports that his family received a loan from Tether to facilitate his divestment of company shares to his children. Senators Elizabeth Warren and Ron Wyden have asked Tether, a prominent stablecoin issuer, whether it provided financial assistance for Lutnick's transfer of his stake in the financial services company to trusts linked to his children, as he complied with government ethics requirements after assuming his Cabinet role. The lawmakers expressed concern that if the reports are accurate, it could raise serious questions about the relationship between Secretary Lutnick and Tether, and the potential influence of Tether on Lutnick's policy decisions. The inquiry follows a new law governing stablecoin issuers, including Tether, which was enacted 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 in the financial interest of Lutnick's family or Tether. Representatives from the Department of Commerce and Tether have not responded to requests for comment on the matter. Lutnick's company, Cantor Fitzgerald, is now led by his sons Brandon and Kyle, while Tether has been expanding its US presence with the launch of its USAT stablecoin and a US arm led by Bo Hines, a former crypto adviser to Trump.