Senator Warren Questions Howard Lutnick’s Ties to Tether
Howard Lutnick, President Donald Trump’s nominee for the position of Secretary of Commerce, is facing significant scrutiny regarding his connections to Tether, a prominent player in the cryptocurrency market. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee and an outspoken critic of the digital asset sector, has raised concerns about Lutnick’s involvement.
As the CEO of Cantor Fitzgerald, a Wall Street firm that serves as the primary banker for Tether, Lutnick has been accused by Warren of facilitating a crypto operation that has “clear ties to criminal activity.” In a pointed letter addressed to Lutnick, Warren stated, “You played a critical role in the rise of Tether, a shadowy crypto firm with profits exceeding $7.7 billion in 2024.”
During his confirmation hearing on Wednesday, which was held by the Senate Commerce Committee to evaluate his suitability for Trump’s cabinet, Lutnick faced tough questions regarding his firm’s association with Tether. Warren highlighted that Cantor Fitzgerald serves as Tether’s dealer for U.S. Treasuries and acts as the main custodian of its Treasury reserves, implying that the firm bears some responsibility for the alleged illicit uses of Tether’s stablecoin, known as USDT, by various criminal organizations and terrorists.
Warren also asserted that Cantor Fitzgerald has a stake in Tether, although Lutnick clarified during the hearing that the firm possesses a convertible bond but does not hold a direct equity interest. He stated, “The use of Tether’s stablecoin has been the subject of over 150 investigations across four continents, including inquiries from the Department of Justice and the Department of the Treasury.”
Tether’s CEO, Paolo Ardoino, has been proactive in defending the company’s reputation amid these allegations. He remarked on Lutnick’s political ascent, stating, “We don’t expect any political favors from anyone.” In response to the growing concerns, Lutnick expressed his support for enhanced U.S. auditing requirements for stablecoin issuers during the confirmation hearing, indicating a willingness to address regulatory issues in the cryptocurrency landscape.
