Warren and other U.S. senators question Tether and Commerce Secretary Howard Lutnick over related-party loan issues

U.S. Democratic Senators Elizabeth Warren and Ron Wyden this week sent letters to Tether CEO Paolo Ardoino and U.S. Commerce Secretary Howard Lutnick, expressing concerns about a loan provided by Tether to a family trust fund whose beneficiaries are Lutnick's children.

The letter noted that prior to becoming Commerce Secretary, Lutnick led Cantor Fitzgerald, which has served as the custodian of Tether's reserves since 2021. The senators questioned whether the loan may have helped Lutnick's children obtain funds to acquire their father's stake in Cantor Fitzgerald and raised concerns that this involves conflicts of interest or bribery. Additionally, the senators expressed concerns about Tether's past compliance record and its lobbying activities during the legislative process of the GENIUS Act, emphasizing the need to ensure that crypto interests with political backgrounds do not receive special treatment. (The Block)