US Democratic senators probe loan between Commerce Secretary Lutnick and Tether

U.S. Democratic Senators Elizabeth Warren and Ron Wyden have sent a letter demanding details of a loan transaction between Commerce Secretary Howard Lutnick and stablecoin issuer Tether, Bloomberg reported. The loan in question involves a trust owned by Lutnick's children, which borrowed an undisclosed amount from Tether shortly after Lutnick sold his stake in the financial firm Cantor Fitzgerald to the trust to comply with federal ethics rules before taking office. The loan is reportedly secured by all of the trust's assets, including convertible notes for a 5% stake in Tether that Cantor Fitzgerald acquired for $600 million in April 2024. The two senators stated they seek to determine whether Tether offered preferential treatment as a bribe or attempted to exert influence, demanding the disclosure of the loan's specific terms and any contact between the two parties since Lutnick's nomination. The Commerce Department maintained that it has complied with ethics regulations, while Tether did not respond to a request for comment.