U.S. Senator Elizabeth Warren has raised considerations over Cantor Fitzgerald CEO Howard Lutnick’s nomination as Commerce Secretary, citing his agency’s ties to stablecoin issuer Tether.
In a letter dated Jan. 27, Warren expressed “critical concern” over Lutnick’s involvement with Tether, which she described as a “recognized facilitator of prison exercise” and “outlaws’ favourite cryptocurrency.”
Whereas Lutnick has agreed to divest his stake in Cantor Fitzgerald—which holds a 5% curiosity in Tether and serves as its asset supervisor—Warren argues that this transfer doesn’t eradicate considerations about his longstanding connections to the corporate.
Warren Questions Lutnick’s Capacity to Prioritize Public Curiosity
As the highest Democrat on the Senate Banking Committee, Warren questioned Lutnick’s skill to prioritize public pursuits over private monetary ties if confirmed as Commerce Secretary.
If Lutnick secures affirmation in his Jan. 29 listening to, Warren warned that he would achieve “extraordinary entry” to President Donald Trump and key regulatory officers.
This, she claimed, might place him to affect insurance policies affecting Tether and the broader cryptocurrency trade.
She demanded that Lutnick reply 13 questions, together with particulars about his present monetary stake in Tether, discussions with Trump administration officers concerning the stablecoin issuer, and whether or not Cantor Fitzgerald carried out due diligence to make sure Tether complies with Know Your Buyer (KYC), Anti-Cash Laundering (AML), and worldwide sanctions laws.
Warren has requested a response by Feb. 10.
Regardless of her considerations, Warren is not going to take part in Lutnick’s affirmation listening to, as she isn’t a member of the Senate Commerce, Science, and Transportation Committee.
Nevertheless, she has been vocal about her opposition to Tether, arguing that dangerous actors use its namesake stablecoin (USDT) for illicit actions, together with cash laundering, sanctions evasion, and financing rogue regimes resembling North Korea’s nuclear program.
Neither Tether nor Cantor Fitzgerald has responded to requests for touch upon Warren’s claims.
Regardless of Warren’s criticism, Tether has actively collaborated with legislation enforcement businesses to fight illicit monetary actions.
On Jan. 27, Tether labored alongside blockchain corporations Tron and TRM Labs to help Spanish authorities in freezing $26.4 million in crypto linked to a pan-European cash laundering operation.
In September 2023, Tether introduced that it had helped the FBI recuperate $6 million from scammers concentrating on U.S. residents, freezing fraudulent wallets to forestall additional exploitation.
Warren’s Continued Push for Crypto Rules
A longtime critic of the crypto trade, Warren has repeatedly pushed for stricter laws.
She lately urged Trump’s Treasury Secretary nominee to think about implementing extra strong crypto oversight.
That's proper – we must always minimize authorities waste.
However we're seeing Trump and Musk's plan in motion: pausing federal funds that rip faculty lunch away from preschoolers and finish Meals on Wheels for seniors. That's not effectivity, it's cruelty.
I’ve higher concepts. https://t.co/spcJ7BF1OE pic.twitter.com/snnl05U3Pa— Elizabeth Warren (@SenWarren) January 28, 2025
In each 2022 and 2023, she launched the Digital Asset Anti-Cash Laundering Act, aiming to carry the crypto sector below present AML and Counter-Terrorism Financing (CTF) frameworks.
Her proposed invoice has confronted opposition from trade teams and nationwide safety consultants.
The Chamber of Digital Commerce, together with 80 former navy and intelligence officers, criticized the laws, warning that it might drive crypto innovation abroad whereas paradoxically hindering legislation enforcement’s skill to trace illicit transactions.
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