Senators Elizabeth Warren and Ron Wyden have reached out to Howard Lutnick and Tether’s CEO Paulo Ardoino regarding a reported loan from Tether to a trust associated with Lutnick’s children. The inquiry comes as Lutnick, now U.S. Secretary of Commerce, is scrutinized over potential conflicts of interest linked to his financial dealings.
The senators, representing the Senate Banking and Finance Committees, are investigating whether Tether facilitated a loan to support Lutnick’s divestiture of his company stake, which was transferred to his children. This transaction reportedly aligns with Lutnick’s compliance with government ethics requirements after assuming his Cabinet role.
“If reports of this loan are accurate, it would raise serious questions about the relationship between Secretary Lutnick and Tether, and the influence of Tether on Mr. Lutnick’s policy decisions,” the senators stated in their letters, referencing a Bloomberg News report.
Last year, Congress, alongside the Trump administration, enacted legislation governing stablecoin issuers, including Tether. Ardoino attended the White House signing of the GENIUS Act, alongside Lutnick, who has been involved in shaping U.S. crypto policy through the President’s Working Group on Digital Assets.
The senators emphasized the importance of Lutnick prioritizing the interests of the American public over personal financial gains. They urged him to clarify the nature of the loan and its implications for his role as Secretary of Commerce.
Representatives from both the Department of Commerce and Tether have not yet responded to requests for comments regarding the letters sent by the senators.
Currently, Lutnick’s former company, Cantor Fitzgerald, is managed by his sons, Brandon and Kyle Lutnick. Tether, headquartered in El Salvador, is actively pursuing a strategy in the U.S. market, including the launch of its USAT stablecoin.
Additionally, Cantor Fitzgerald has emerged as a significant donor to the Fellowship PAC, a political action committee that has contributed millions to support Republican candidates across various races. This PAC is led by a Tether U.S. executive and has connections to a media firm co-founded by Bo Hines, a former crypto advisor to Trump.
Senators Warren and Wyden are investigating a loan from Tether to a trust linked to Secretary Lutnick's children, raising concerns about potential conflicts of interest. The inquiry follows Lutnick's compliance with ethics regulations after his appointment as Secretary of Commerce.