Senator Elizabeth Warren, one of the most prominent crypto skeptics in Washington, is now focusing her scrutiny on Tether and the man leading the Department of Commerce.
In a new probe framed around alleged national security concerns, Warren and Senator Ron Wyden have asked Commerce Secretary Howard Lutnick to respond to reports that Tether provided a loan connected to a foreign stablecoin arrangement involving a trust that benefits Lutnick’s four children.
Senators Probe Lutnick’s Link To TetherThe issue, according to Bloomberg reporting and the letter sent by the senators, centers on the timing of Lutnick’s Cantor Fitzgerald divestiture and a subsequent credit filing in New York.
Warren and Wyden argue the arrangement, if accurate, would raise serious questions about the relationship between Lutnick and the crypto company and about whether Tether could have influenced policy decisions made by a Cabinet secretary.
‘Favorable Treatment’ In The GENIUS Act?Against that backdrop, the lawmakers say the reported loan becomes even more troubling given Lutnick’s close relationship with Tether before his nomination and what the letter calls the favorable treatment Tether received in the GENIUS Act, the country’s first stablecoin bill signed by President Trump last July.
They also ask whether the loan financed the divestiture of his Cantor Fitzgerald stake and to provide the size and terms of the loan, along with a copy of the credit document.
They also request information about other sources of financing for the divestiture, including what other funding provided capital to Dynasty Trust A or any related legal entities involved in the divestiture, aside from Tether.
Featured image from OpenArt, chart from TradingView.com
