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

US Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which manages Tether's US finances, has been questioned by Democratic Senators regarding reports that a trust linked to his children received a loan from Tether, allegedly 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 multi-billion dollar transfer of his financial services company through trusts tied to his adult children, following his compliance with government ethics requirements after assuming the Cabinet position. 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 responded to reports of unspecified loan amounts that initially appeared in Bloomberg News. Congress, with the help of the Trump administration, passed a law last year to regulate stablecoin issuers, including Tether. CEO Ardoino attended the White House signing of the law, and Lutnick has been a member of the President's Working Group on Digital Assets, driving 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. Representatives for the Department of Commerce and Tether did not immediately respond to requests for comment on the letters. Lutnick's Cantor is now led by his sons, Brandon Lutnick and Kyle Lutnick. Tether, headquartered 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 for Trump. Cantor is the largest donor to the Fellowship PAC, a political action committee that has spent millions supporting Republicans in various Senate, House, and governor races.