Senator Elizabeth Warren has expressed “serious concern” over Howard Lutnick’s “personal ties” with Tether and its affiliates. This was stated in her letter to the nominee for the U.S. Commerce Secretary position.
The anti-crypto senator raised questions about the collaboration between Tether and Cantor Fitzgerald, where Lutnick served as CEO.
She described the stablecoin issuer as a “notorious organizer of criminal activity,” and USDT as “the favorite cryptocurrency of wrongdoers.”
“Although you agreed to divest your stake in Cantor Fitzgerald, which owns 5% of Tether shares and acts as its asset manager, this does not eliminate questions about your deep personal ties to the company or its affiliates,” the document states.
Warren questioned Lutnick’s “ability to prioritize the interests of U.S. citizens over personal gain” if confirmed as Commerce Secretary.
If approved on January 29, the former CEO of Cantor Fitzgerald would gain “extraordinary access” to President Donald Trump and other officials overseeing Tether.
This could allow him to “directly or indirectly influence the regulation of the stablecoin issuer and the entire crypto industry,” Warren warned.
The senator urged Lutnick to respond by February 10 to 13 questions, revealing details about his stake in Tether and discussions with Trump administration officials about the company.
Warren also requested information regarding Cantor Fitzgerald’s audit of the USDT issuer’s compliance with legislation.
The senator is not a member of the Senate Commerce, Science, and Transportation Committee, which will hold hearings on the Commerce Secretary’s confirmation.
Warren is known for her criticism of digital assets. She has notably developed a bill to combat money laundering, extending BSA requirements, including KYC, to miners, validators, and wallet operators.
Previously, Fox Business journalist Eleanor Terrett explained the delay in SEC approval of spot Ethereum ETFs as being due to pressure from Warren on the agency’s head.
Lutnick described the relationship between Cantor Fitzgerald and the USDT issuer as purely professional and based on managing the latter’s reserves.
In September, Tether, TRON, and TRM Labs established the T3 Financial Crime Unit alliance to combat financial crimes. It will focus on preventing the illegal use of USDT on the TRON blockchain.
In the same month, the company helped the U.S. Department of Justice seize assets worth over $6 million linked to crypto scammers from Southeast Asia.
A month later, the WSJ reported on an investigation by U.S. authorities into possible violations by Tether of sanctions and anti-money laundering rules. The firm’s CEO, Paolo Ardoino, denied this information.