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 “severe concern” over Lutnick’s involvement with Tether, which she described as a “identified facilitator of felony 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 Means to Prioritize Public Curiosity
As the highest Democrat on the Senate Banking Committee, Warren questioned Lutnick’s capability 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, may place him to affect insurance policies affecting Tether and the broader cryptocurrency business.
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 performed due diligence to make sure Tether complies with Know Your Buyer (KYC), Anti-Cash Laundering (AML), and worldwide sanctions rules.
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 is just not a member of the Senate Commerce, Science, and Transportation Committee.
Nevertheless, she has been vocal about her opposition to Tether, arguing that unhealthy actors use its namesake stablecoin (USDT) for illicit actions, together with cash laundering, sanctions evasion, and financing rogue regimes equivalent to 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 regulation enforcement companies 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 stop additional exploitation.
Warren’s Continued Push for Crypto Rules
A longtime critic of the crypto business, Warren has repeatedly pushed for stricter rules.
She lately urged Trump’s Treasury Secretary nominee to think about implementing extra sturdy crypto oversight.
That's proper – we must always reduce authorities waste.
However we're seeing Trump and Musk's plan in motion: pausing federal funds that rip college 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 underneath current AML and Counter-Terrorism Financing (CTF) frameworks.
Her proposed invoice has confronted opposition from business teams and nationwide safety consultants.
The Chamber of Digital Commerce, together with 80 former navy and intelligence officers, criticized the laws, warning that it may drive crypto innovation abroad whereas paradoxically hindering regulation enforcement’s capability to trace illicit transactions.
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