Senators Warren and Wyden Demand Answers from Commerce Secretary Lutnick Over Tether Loan to Children's Trust

Two US senators have formally requested answers from Commerce Secretary Howard Lutnick regarding his ties to Tether, the world’s largest stablecoin issuer, after a recent report revealed a financial transaction involving his family.

Senators Elizabeth Warren and Ron Wyden sent a letter to Lutnick on April 29, questioning a reported loan from Tether to a trust benefiting his four children. The loan was issued in October 2024, coinciding with Lutnick’s sale of his multibillion-dollar stake in Cantor Fitzgerald, a major financial services firm.

Loan Details and Potential Conflicts

According to Bloomberg, the trust holds more than half of the equity in Cantor Fitzgerald. The loan from Tether was reportedly backed by “all assets” in the trust, raising concerns about potential conflicts of interest.

“If reports of this loan are accurate, it would raise serious questions about your relationship with Tether and the company’s influence on your policy decisions.”

The senators also expressed concerns that Tether may have sought to exert control or influence over Lutnick’s decisions as Commerce Secretary.

“We want to ensure that Tether has not sought to bribe or otherwise exert control or influence over you.”

Both Tether and the Department of Commerce have not yet responded to requests for comment.

Lutnick’s Long-Standing Ties to Tether

Lutnick has a significant history with Tether. As the former chairman and CEO of Cantor Fitzgerald, he oversaw the firm’s management of billions in US Treasury bonds that back USDT, Tether’s stablecoin. In addition to his professional ties, Lutnick has publicly vouched for the company.

During a 2024 interview at the World Economic Forum in Davos, Switzerland, Lutnick stated:

“There’s a company that I like called Tether. From what we’ve seen, and we did a lot of work, they have the money they say they have.”

Lutnick became Commerce Secretary in February 2025 and completed his divestiture from Cantor Fitzgerald in October of that year.

Senators’ Concerns Over Financial Transactions

In their letter, Warren and Wyden raised questions about whether Tether’s loan may have provided the capital needed for Lutnick’s children to purchase his stake in Cantor Fitzgerald. They also asked whether Tether secured an interest in the children’s assets in return.

The senators requested detailed information from Lutnick, including:

• Whether Tether’s loan financed his divestiture from Cantor Fitzgerald;
• His role in “procuring, soliciting, and/or negotiating the loan”;
• The loan’s size and terms;
• Any contact he had with Tether or its executives since becoming Commerce Secretary.

As of now, neither Tether nor the Department of Commerce has responded to these inquiries.

This letter is the latest in a series of actions by Democrats to scrutinize crypto industry ties among allies of President Donald Trump, particularly as they relate to potential conflicts of interest in policy decisions.