Senator Elizabeth Warren Raises Concerns Over Tether’s Financial Ties to Commerce Secretary Nominee

Serving as a Commerce Secretary nominee, Howard Lutnick faces scrutiny from Senator Elizabeth Warren over his financial ties to the stablecoin company Tether. Warren sent a letter to Lutnick ahead of his Senate confirmation hearing, questioning his ability to serve impartially while maintaining connections to Tether, a company allegedly involved in illicit financial activities.

Tether’s Alleged Involvement in Illicit Financial Activities

Warren cited Lutnick’s role as CEO of Cantor Fitzgerald, a key Tether partner that reportedly holds a 5% stake in the company. She raised concerns over Tether’s alleged involvement in illicit financial activities, including ties to North Korean weapons programs, drug cartels, and terrorist groups.

“I write to express serious concern about your nomination to become Secretary of the Department of Commerce,” Warren wrote. “In particular, your deep involvement with and support for Tether, a known facilitator of criminal activity that has been described as ‘outlaws’ favorite cryptocurrency,’ raises concerns about your judgment and ability to put the interests of the American people ahead of your own financial interests.”

Tether’s Due Diligence and Regulatory Concerns

Warren’s letter requests details on Lutnick’s personal and corporate investments in Tether, any discussions he has had about Tether with Trump administration officials, and whether Cantor Fitzgerald conducted due diligence on the company’s compliance with financial regulations, including anti-money laundering and counter-terrorism financing laws.

Warren also referenced reports suggesting that Lutnick used his position as Trump’s transition co-chair to advance Cantor Fitzgerald’s business interests, including expanding its relationship with Tether.

Warren’s 13 Questions

Warren sent Lutnick a list of 13 detailed questions, seeking clarification on his financial relationship with Tether. Some of the questions focused on:

  • Lutnick’s and Cantor Fitzgerald’s total financial stake in Tether
  • The due diligence conducted before accepting Tether as a client
  • Whether they ensured the company complied with anti-money laundering and sanctions laws
  • Lutnick’s relationship with Tether CFO Giancarlo Devasini
  • Whether he discussed Tether with Trump transition officials

Lutnick’s Confirmation and Potential Conflict of Interest

If confirmed, Lutnick would oversee a department responsible for trade policy, economic development, and business regulation. Warren highlighted the potential conflict of interest, stating that Lutnick’s nomination could put him in a position to influence policies that may directly or indirectly impact Tether and the entire cryptocurrency industry.

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