TechFlow reported, citing Cointelegraph, that U.S. Senator Elizabeth Warren is pressuring Howard Lutnick—Donald Trump’s nominee for Secretary of Commerce—to clarify his ties and financial interests with stablecoin issuer Tether.
Warren stated that Lutnick’s investment firm, Cantor Fitzgerald, holds a 5% stake in Tether and serves as its asset manager. Although Lutnick has pledged to divest these interests, Warren questioned whether he can prioritize public interest over personal financial gain.
Warren highlighted that Tether’s USDT stablecoin has been used in criminal activities such as money laundering, sanctions evasion, and funding North Korea’s nuclear program. She also noted that if confirmed, Lutnick would hold significant influence over cryptocurrency industry policies, and she demanded answers to 13 questions regarding his financial interests and due diligence by February 10.
Despite Tether’s recent cooperation with law enforcement in freezing illicit funds and recovering fraud proceeds, Warren continues to advocate for stricter regulation of the crypto sector. She previously championed the Digital Asset Anti-Money Laundering Act in 2022 and 2023, but the bill faced strong opposition from cryptocurrency advocacy groups and national security experts, who warned it could drive the digital asset industry overseas and complicate law enforcement efforts.
