Democrat Senators question Howard Lutnick over Tether ties

A pair of US Senators are demanding answers from Commerce Secretary Howard Lutnick after a recent news report raised questions about his relationship with Tether, the world’s largest stablecoin issuer.

A trust benefitting Lutnick’s four children borrowed from Tether in October, just as Lutnick sold them his multibillion-dollar stake in finance giant Cantor Fitzgerald, Bloomberg reported last month.

Lutnick’s stake in Cantor Fitzgerald was reportedly sold to multiple trusts that benefit his children. But the trust that borrowed from Tether holds more than half the equity in Cantor, according to Bloomberg. Moreover, the loan was reportedly backed by “all assets” in the trust.

“If reports of this loan are accurate, it would raise serious questions about your relationship with Tether and the company’s influence on your policy decisions,” Senators Elizabeth Warren and Ron Wyden wrote in their letter, dated April 29.

“We want to ensure that Tether has not sought to bribe or otherwise exert control or influence over you.”

Tether and the Department of Commerce did not immediately respond to DL News’ requests for comment.

The letter is the latest example of Democrats using crypto as a cudgel against President Donald Trump and his allies, many of whom have ties to the industry. Democrats argue those ties pose conflicts of interest, and have raised the issue at virtually every hearing over crypto legislation since Trump began his second term as president.

Lutnick has a long…