Senators Probe Lutnick Over Tether Loan to Children’s Trust

Senators Elizabeth Warren and Ron Wyden asked Commerce Secretary Howard Lutnick to explain whether a Tether loan financed a trust that benefits his four children at the same time he transferred his Cantor Fitzgerald stake to them.

In a letter dated April 29, the senators asked whether the October loan helped fund the purchase of Lutnick’s equity, whether Lutnick played any role in arranging the loan, the size and terms of the loan, and whether he has had contact with Tether or its executives since becoming Commerce Secretary. The senators wrote that the trust that borrowed from Tether holds more than half of Cantor Fitzgerald’s equity and that the loan was reportedly secured by “all assets” in the trust.

Lutnick completed the divestiture of his multibillion-dollar stake in Cantor Fitzgerald in October after agreeing to divest when he became Commerce Secretary in February 2025. The senators wrote that, if the reports are accurate, the timing and terms of the loan would raise “serious questions” about his relationship with Tether and whether the company sought to “bribe or otherwise exert control or influence” over him.

Lutnick is a longtime figure at Cantor Fitzgerald, where he served as chairman and CEO. Cantor manages billions of U.S. Treasury securities that are part of the reserves backing USDT, the stablecoin issued by Tether. At the World Economic Forum in Davos in 2024, Lutnick defended Tether, saying, “From what we’ve seen, and we did a lot of work, they have the money they say they have.”

The senators requested documents and answers about whether Lutnick was involved in procuring, soliciting or negotiating the loan, details about any collateral and repayment arrangements, and whether Tether received an interest in the trust’s assets in exchange for the loan. The Department of Commerce and Tether did not immediately respond to requests for comment. The senators asked Lutnick to provide a response and relevant records so they can determine whether further oversight or action is warranted.