Howard Lutnick, who’s President Donald Trump’s nominee to be secretary of Commerce, is drawing scrutiny on his relationship with Tether from Senator Elizabeth Warren — the rating Democrat on the Senate Banking Committee and one in every of Congress’ most dependable critics of the digital asset sector.
As CEO of Cantor Fitzgerald, the Wall Road agency that acts because the U.S. banker for main international stablecoin issuer Tether, the Massachusetts Democrat stated Lutnick backed a crypto operation with “clear ties to legal exercise.”
“You performed a important function within the rise of Tether, a shadowy crypto agency with earnings exceeding $7.7 billion in 2024,” Warren wrote in a letter to Lutnick, who’s making his case Wednesday to the Senate Commerce Committee that is contemplating his affirmation to Trump’s cupboard.
As Tether’s U.S. Treasuries supplier and the primary custodian of its Treasury reserves, she advised Lutnick’s agency shares accountability for illicit abuse of its stablecoin (USDT) by criminals and terrorists. She additionally contended that Cantor Fitzgerald owns a part of Tether, although Lutnick testified on Wednesday that the agency has a convertible bond however not a direct fairness stake.
“Using Tether’s stablecoin has been the topic of over 150 investigations throughout 4 continents, together with right here with the Division of Justice and the Division of the Treasury,” Warren wrote to Lutnick, who led Trump’s transition crew as he returned to the White Home.
Tether CEO Paolo Ardoino has sought to defend his firm’s status and stated of the political rise of Lutnick, “We do not count on any political favors by anybody.”
Lutnick stated within the affirmation listening to that he helps higher U.S. auditing calls for on stablecoin issuers.
Learn Extra: Howard Lutnick: Tether’s Huge Backer