Senator Warren Inquires About Tether's Alleged Loan to Commerce Secretary Lutnick's 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 a trust linked to his children received a loan from Tether to facilitate Lutnick's divestment of his company stake to his children. Senators Elizabeth Warren and Ron Wyden have asked Tether, a leading global stablecoin issuer, whether it provided financial assistance for Lutnick's transfer of his company stake, valued at multiple billions of dollars, to 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 Mr. Lutnick's policy decisions. The letters from the senators responded to reports of unspecified loan amounts that initially appeared in Bloomberg News. Last year, Congress, with the help of the Trump administration, introduced a new law to regulate stablecoin issuers, including Tether. Tether CEO Ardoino attended the White House signing of the law, known as the GENIUS Act, and Lutnick has been a member of the President's Working Group on Digital Assets, which has driven US crypto policy. 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. The Department of Commerce and Tether have not immediately responded to requests for comment on the letters. Lutnick's company, Cantor, is now led by his sons Brandon and Kyle. Tether, based in El Salvador, 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. Cantor has been the largest donor to the Fellowship PAC, a political action committee that has spent millions of dollars supporting Republicans in various elections.