Elizabeth Warren Questions Howard Lutnick’s Tether Connections During Senate Hearing
Howard Lutnick, President Trump's nominee for Secretary of Commerce, faces scrutiny from Senator Elizabeth Warren regarding his ties to Tether, a major stablecoin issuer. Key points include:
- Lutnick is CEO of Cantor Fitzgerald, which serves as Tether's U.S. banker.
- Warren claims Lutnick's involvement supports operations linked to criminal activity, noting Tether's profits exceeded $7.7 billion in 2024.
- Lutnick testified that Cantor Fitzgerald holds a convertible bond but not direct equity in Tether.
- Tether's stablecoin has been investigated in over 150 cases globally.
- Lutnick supports increased auditing for stablecoin issuers and suggests deploying AI tools for law enforcement to combat illicit activities.
- He argues that transparency in Tether helps track illegal activities better than traditional currencies.
Tether’s CEO defends the company, stating they do not expect political favors. The Senate Commerce Committee is reviewing Lutnick's nomination.