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▲ Tether (Tether, USDT)/AI generated image
U.S. senators are directly targeting loan allegations surrounding stablecoin issuer Tether, reigniting the clash between the political establishment and the cryptocurrency industry.
Bitcoin.com reported on May 3 (local time) that Senators Elizabeth Warren and Ron Wyden sent letters to U.S. Secretary of Commerce Howard Lutnick and Tether CEO Paolo Ardoino, demanding the submission of documents related to the loan transaction.
At the heart of the controversy is a loan reportedly provided by Tether to 'Dynasty Trust A', a family trust of Lutnick. This trust is structured with Lutnick's children registered as beneficiaries, and the loan is said to have been executed shortly after Lutnick transferred his shares in Cantor Fitzgerald to his children.
The senators stated, “If the reports are true, serious questions arise about the relationship between Tether and Lutnick, and its impact on policy decisions,” adding, “It must be confirmed whether Tether attempted to offer bribes or exert influence.”
Another issue raised is that the loan was secured by all assets held by the trust. This reportedly includes a significant portion of Cantor Fitzgerald shares. The senators are closely examining whether this structure effectively constitutes financing for an equity acquisition.
Furthermore, Tether's regulatory history and USDT use cases have also come under scrutiny. The senators cited allegations that Tether has been involved in illegal fund transactions, sanction evasion, and money laundering in the past, raising concerns about its potential impact on national security and the financial system.
The letter requested answers on specific details, including whether the loan was provided, its size and conditions, Lutnick's involvement, and whether the loan was linked to USDT collateral. The deadline for response was set for May 13.
As political pressure intensifies, the broader discussion surrounding Tether and stablecoin regulation is once again emerging as a hot topic.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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