Howard Lutnick, the current U.S. Secretary of Commerce and former CEO of Cantor Fitzgerald, which manages Tether’s finances in America, has come under scrutiny from Senate Democrats. They are investigating claims that a trust linked to his children received a loan from Tether to facilitate Lutnick’s divestiture of company shares transferred to them.
Senators Elizabeth Warren and Ron Wyden have questioned the leading stablecoin issuer regarding its alleged role in financing Lutnick’s multi-billion-dollar transfer of financial services firm assets through trusts associated with his adult children. This inquiry follows ethics compliance after Lutnick assumed his Cabinet position. The senators expressed concern over potential conflicts between Secretary Lutnick, Tether, and their influence on policy decisions, referencing Bloomberg News reports about unspecified loan amounts.
The administration under President Donald Trump supported legislation last year to regulate stablecoin issuers like Tether. CEO Ardoino attended the White House signing of this law, known as the GENIUS Act, alongside Lutnick, who also participates in the President’s Working Group on Digital Assets guiding U.S. crypto policy.
The senators emphasized that decisions should prioritize public interest over personal or company financial gains, urging transparency from Lutnick. Neither the Department of Commerce nor Tether provided immediate responses to inquiries about these letters.
Cantor Fitzgerald is now managed by Brandon Lutnick, chairman & CEO, and Kyle Lutnick, executive vice chairman. Meanwhile, Tether, headquartered in El Salvador, has been expanding its U.S. operations through USAT stablecoin and a U.S. division led by Bo Hines, a former Trump crypto advisor.
Cantor Fitzgerald is the primary donor to Fellowship PAC, a new political action committee that has spent millions on Republican campaigns in Senate, House, and gubernatorial races. This spending is facilitated through a media firm co-founded by Hines and his father.