Lutnick

Senators Elizabeth Warren (D-MA) and Ron Wyden (D-OR) have written to Commerce Secretary Howard Lutnick and Tether CEO Paolo Ardoino, requesting information about loans made by the stablecoin firm to a trust that Lutnick’s children benefited from.

Bloomberg reported in March that Lutnick sold his stake in Cantor Fitzgerald, a financial services firm, to his four children in October 2025, in order to comply with federal ethics rules. A day later, Warren and Wyden wrote, Tether lent an undisclosed amount to “Dynasty Trust A,” a trust of which Lutnick’s four children are beneficiaries.

The senators said that if “reports of this loan are accurate, it would raise serious questions about the relationship between Secretary Lutnick and Tether,” adding that, “We want to ensure that Tether has not sought to bribe or otherwise exert control or influence over Secretary Lutnick,” wrote the senators.

They went on to allege that Tether had received “favorable treatment” in July 2025’s GENIUS Act, which gave stablecoin firms operating in the US regulatory clarity for the first time, making allegations of a loan from Tether to Lutnick’s children’s trust “even more troubling.”

Decrypt has contacted Tether for comment. Lutnick or the Department of Commerce have yet to officially comment on the reports.

Warren, Tether, and stablecoins

Warren has been broadly critical of the GENIUS Act and the stablecoin industry as a whole.

In March last year, Warren said the bill “lacks basic safeguards necessary to ensure that stablecoins don’t blow up our entire financial system.” She has also highlighted fears about stablecoins being used for illicit activity like money laundering by organizations such as drug cartels, as well as concerns about consumer protection from fraud.

Tether has been subject to several probes by different government agencies, including a CFTC investigation that resulted in the firm being slapped with a $41 million fine in 2021 over “untrue or misleading statements” relating to its USDT stablecoin. In October 2024, it was reported that Tether was under federal criminal investigation for possible violations of sanctions and anti-money-laundering rules, according to The Wall Street Journal.

Links between the crypto industry and politicians are coming under scrutiny around the world. Billionaire Christopher Harborne, who holds a 12% stake in Tether, hit the headlines this week after reports that he had given British politician Nigel Farage a previously undisclosed $6.7 million (£5 million) gift in 2024, following which he donated some £12 million to Farage’s Reform UK party.