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

U.S. Commerce Secretary Howard Lutnick, formerly the CEO of Cantor Fitzgerald, which manages Tether's U.S. finances, is facing scrutiny 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, ranking Democrat on the Senate Banking Committee, and Ron Wyden, top Democrat on the Finance Committee, are seeking clarification from the global stablecoin issuer on whether it provided financial assistance to Lutnick's multi-billion-dollar transfer of his financial-services company to 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, it would raise serious questions about the relationship between Secretary Lutnick and Tether, and the potential influence of Tether on Mr. Lutnick's policy decisions. Congress, with the support of the Trump administration, recently passed a law governing stablecoin issuers, including Tether, and CEO Ardoino was in attendance at the White House signing of the law. Lutnick, a member of the President's Working Group on Digital Assets, has been instrumental in shaping U.S. crypto policy. The senators emphasized the importance of making decisions that serve the best interests of the American public, rather than personal financial interests. Representatives for the Department of Commerce and Tether have not responded to requests for comment on the matter. Lutnick's Cantor is now led by his sons, Brandon and Kyle Lutnick, while Tether, headquartered in El Salvador, is pursuing a U.S. strategy with the launch of its USAT stablecoin and a U.S. arm led by Bo Hines, a former crypto adviser to Trump.