Warren, Wyden Probe Lutnick Over Tether Loan to Childrens Trust

U.S. Senators Elizabeth Warren and Ron Wyden have launched an inquiry into Commerce Secretary Howard Lutnick over a loan that stablecoin issuer Tether provided to a trust benefiting his four children. The Democratic lawmakers sent a letter this week to Lutnick and Tether CEO Paolo Ardoino, requesting documents related to the transaction filed in New York on October 7, 2025.

The probe stems from reports that the loan to Dynasty Trust A occurred shortly after Lutnick transferred his multibillion-dollar stake in Cantor Fitzgerald, the firm he previously led, to the trust to comply with federal ethics rules following his February 2025 appointment as Commerce secretary. Cantor Fitzgerald has longstanding ties to Tether, serving as custodian for its U.S. Treasury reserves since 2021 and acquiring a 5 percent stake in the company for $600 million in April 2024. The trust's loan is reportedly secured by all its assets, including convertible notes linked to that stake.

In their letter, the senators expressed concern that the arrangement could indicate Tether provided capital to facilitate the divestiture in exchange for influence over Lutnick's policy decisions. "This document raises...