US Senator Elizabeth Warren Raises Concerns About Howard Lutnick, Donald Trump's Nominee for Commerce Secretary, over His Ties to Stablecoin Issuer Tether

Warren, a strong critic of cryptocurrency, sent a letter on Jan. 27 questioning Lutnick's involvement with Tether and its potential impact on his role in the government.

US Senator Elizabeth Warren is raising concerns about Donald Trump’s nominee for Commerce Secretary, Howard Lutnick, over his ties to stablecoin issuer Tether.

Warren, who is a strong critic of cryptocurrency, sent a letter on Jan. 27 questioning Lutnick’s involvement with Tether and how it might affect his role in the government.

Lutnick is the CEO of Cantor Fitzgerald, an investment firm that holds a 5% stake in Tether and also serves as its asset manager. Despite agreeing to divest from the company, Warren argues that this does not eliminate concerns about his past connections or possible influence over crypto regulations.

Specifically, she questioned whether Lutnick could prioritize the interests of the American people over his financial ties if he is confirmed as Commerce Secretary.

If confirmed, Lutnick would have direct access to President Trump and other officials involved in crypto regulations, Warren noted. This, she argues, could allow him to influence policies that might benefit Tether or the crypto industry as a whole.

As part of her inquiry, Warren asked Lutnick to answer 13 questions.

These include details about his current financial stake in Tether, discussions with Trump officials regarding the company, and whether Cantor Fitzgerald ensures that Tether follows US financial regulations like the Know Your Customer (KYC) and Anti-Money Laundering (AML) laws.

She has requested answers by Feb. 10. However, Warren is not part of the Senate committee that will oversee Lutnick’s confirmation hearing on Jan. 29.

Warren has long been critical of Tether, arguing that it is used for illegal activities like money laundering and sanctions evasion. She also highlighted concerns that Tether may be used to finance North Korea’s nuclear program.

However, Tether has worked with law enforcement to combat illicit financial activities. On Jan. 27, Tether worked with blockchain firms Tron and TRM Labs to help Spanish authorities freeze $26.4 million linked to money laundering. In September 2023, Tether helped the FBI to recover $6 million from crypto scammers who were targeting US citizens.

Related: Hypocrite Senator Elizabeth Warren! Quit Targeting Crypto

Warren has been pushing for tighter crypto regulations, urging Trump’s Treasury Secretary nominee to consider stricter oversight and introducing legislation to increase controls on digital assets.

Her proposed Digital Asset Anti-Money Laundering Act, which was introduced in both 2022 and 2023, aims to enforce existing financial laws on the crypto industry. However, the bill has faced opposition from US-based crypto advocacy groups and former security officials, who argue that it could drive the industry overseas and limit law enforcement’s ability to track illicit activities.

Tether and Cantor Fitzgerald have not yet responded to Warren’s letter.