U.S. Commerce Secretary Howard Lutnick is facing questions from Senate Democrats over reports that Tether, the leading stablecoin issuer, made a loan to a trust tied to his adult children. Senators Elizabeth Warren and Ron Wyden sent letters to Lutnick and Tether CEO Paolo Ardoino, seeking details on the loan, which reportedly helped finance Lutnick's divestiture of his stake in Cantor Fitzgerald-the firm that has handled Tether's U.S. finances.
"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 lawmakers wrote. The letters follow reporting by Bloomberg News.
Lutnick, a former CEO of Cantor Fitzgerald, joined the Trump administration and divested his ownership in the company to comply with ethics rules. That stake was transferred to trusts for his sons, Brandon and Kyle Lutnick, who now lead Cantor. The Senate letters question whether the loan compromises Lutnick's impartiality on digital asset policy, particularly regarding the recently passed GENIUS Act, which governs stablecoin issuers. Tether CEO Ardoino attended the White House signing of that bill.
Representatives for the Commerce Department and Tether have not commented. Tether is expanding its U.S. presence with the launch of its USAT stablecoin and a new U.S. division led by Bo Hines, a former crypto adviser to President Trump.