US Senators Probe Commerce Secretary Over Alleged Tether Loan

U.S. Commerce Secretary Howard Lutnick is facing scrutiny from Senate Democrats following reports that a trust belonging to his children received a loan from Tether, the world's largest stablecoin issuer. Senators Elizabeth Warren and Ron Wyden sent formal letters to both Lutnick and Tether, questioning if the loan was used to finance the multi-billion-dollar transfer of Lutnick's stake in Cantor Fitzgerald to his adult children. The transfer was intended to satisfy government ethics requirements upon Lutnick's appointment to the Cabinet. The lawmakers expressed concern that such a financial arrangement could compromise the Secretary's impartiality and allow Tether to exert undue influence over U.S. policy decisions. This inquiry comes as the administration and Congress recently implemented the GENIUS Act to govern stablecoin issuers. Lutnick has been a central figure in the President’s Working Group on Digital Assets, which has been instrumental in driving U.S. crypto policy. Simultaneously, Tether has been aggressively pursuing a U.S. strategy, including the launch of its USAT stablecoin and the establishment of a U.S. arm led by former Trump adviser Bo Hines. Further complicating the matter is the role of the Fellowship PAC, a political action committee led by a Tether U.S. executive. The PAC has received significant funding from Cantor Fitzgerald, which is now managed by Lutnick's sons, Brandon and Kyle. Neither the Department of Commerce nor Tether immediately responded to requests for comment regarding the Senate letters.