Senator Warren Presses Trump’s Commerce Pick Lutnick Over Tether Ties and Potential Conflicts of Interest

US Senator Elizabeth Warren has raised concerns over Howard Lutnick, President Donald Trump’s nominee for Commerce Secretary, due to his firm Cantor Fitzgerald’s involvement with stablecoin issuer Tether. In a letter dated January 27, Warren expressed “serious concern” over Lutnick’s financial ties to Tether, citing its reputation for facilitating criminal activity and its use by bad actors, such as those involved in money laundering and sanctions evasion.

Warren’s letter questioned Lutnick’s ability to prioritize the interests of the American public if confirmed for the role, particularly given Cantor Fitzgerald’s 5% stake in Tether and its role as the stablecoin’s asset manager. While Lutnick has pledged to divest from the firm, Warren emphasized that his ongoing personal connections with Tether raise continued questions, especially given his potential influence over crypto-related policies if appointed.

The Massachusetts senator, who is also the top Democrat on the Senate Banking Committee, noted that Lutnick’s confirmation could grant him “extraordinary access” to President Trump and key figures responsible for regulating Tether. She worries this access could lead to decisions impacting Tether and the broader cryptocurrency landscape.

Warren asked Lutnick a list of questions, including around his current financial stake in Tether, which she wants answered by Feb. 10. Source: Elizabeth Warren

In her letter, Warren requested answers to 13 questions regarding Lutnick’s financial interests in Tether, any discussions with Trump administration officials about the stablecoin, and whether Cantor Fitzgerald has conducted adequate due diligence to ensure Tether complies with key anti-money laundering (AML) and Know Your Customer (KYC) regulations. Warren set a deadline of February 10 for responses.

Tether, which operates the USDT stablecoin, has been linked to illicit activity but has also assisted law enforcement efforts. Recent collaborations with blockchain firms helped Spanish authorities freeze $26.4 million tied to a money laundering operation, and Tether has previously worked with the FBI to recover funds lost to crypto scams.

Also Read: Elizabeth Warren Questions Scott Bessent’s Deregulation Plans: Are We Risking Another Financial Crisis?

As a vocal crypto skeptic, Warren has long called for stricter regulations, including her Digital Asset Anti-Money Laundering Act, aimed at curbing illegal activities within the industry. However, her proposals have faced backlash from crypto advocacy groups concerned about stifling innovation and undermining national security.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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