Senators Elizabeth Warren (D-MA) and Ron Wyden (D-OR) have reached out to Commerce Secretary Howard Lutnick and Tether CEO Paolo Ardoino, requesting details about a loan provided by the stablecoin company to a trust benefiting Lutnick’s children.
A Bloomberg report from March disclosed that in October 2025, Lutnick divested his stake in Cantor Fitzgerald, a financial services firm, into a trust for his four children, adhering to federal ethics regulations. The senators followed up the next day, stating Tether had extended an undisclosed loan to “Dynasty Trust A,” which benefits Lutnick’s offspring.
Warren and Wyden expressed concerns that if these reports are accurate, they could indicate problematic interactions between Secretary Lutnick and Tether. They emphasized a need for assurance that Tether hasn’t attempted any form of bribery or influence over Lutnick in his official capacity.
Further allegations suggest that Tether gained “favorable treatment” from the GENIUS Act passed in July 2025, which provided U.S.-based stablecoin companies with regulatory clarity. This context makes the loan to Lutnick’s children’s trust even more concerning for the senators.
Decrypto has sought comments from Tether; however, neither Lutnick nor the Department of Commerce have officially responded to these allegations.
Warren has consistently criticized the GENIUS Act and the broader stablecoin industry. Last March, she argued that the bill lacks necessary safeguards against potential systemic risks posed by stablecoins, highlighting concerns about their use in illegal activities like money laundering and inadequate consumer fraud protection measures.
Tether faces ongoing scrutiny from multiple government entities. In 2021, a CFTC investigation resulted in a $41 million fine over misleading statements regarding its USDT stablecoin. Furthermore, as of October 2024, The Wall Street Journal reported that Tether was under federal criminal investigation for potential sanctions and anti-money laundering law violations.
The global crypto industry’s connections to politicians are increasingly under the microscope. This week, billionaire Christopher Harborne, who owns a 12% stake in Tether, attracted media attention when it emerged he had given British politician Nigel Farage an undisclosed $6.7 million gift in 2024. Following this, he reportedly contributed £12 million to Farage’s Reform UK party.