According to Bloomberg, Democratic Senators Elizabeth Warren and Ron Wyden sent a letter this week to Commerce Secretary Howard Lutnick and Tether CEO Paolo Ardoino questioning whether Tether provided a loan to a family trust benefiting Lutnick’s four children. The senators expressed concern that the undisclosed loan may have helped Lutnick’s children purchase his stake in Cantor Fitzgerald, a firm now run by his sons, as part of his divestment to comply with federal ethics rules.
“If true, that would be a startling revelation,” Warren and Wyden said in the letter, adding that Tether’s close relationship with Cantor Fitzgerald since 2021—when the firm began serving as custodian for Tether’s reserves—combined with Tether’s favorable treatment in the recently passed GENIUS stablecoin act, raises questions about potential conflicts of interest.
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