Tether's Ties: Lutnick Grilled on USDT's Reserves
1min read US lawmakers have been scrutinizing the relationship between Tether and Howard Lutnick, the nominee for US Secretary of Commerce. During a Senate Commerce Committee hearing, Democratic Senator Maria Cantwell raised questions about Cantor Fitzgerald's role as Tether's custodian since the end of 2021. USDT, the largest stablecoin by market capitalization, has been under regulatory scrutiny due to concerns about its reserves and potential use in illicit financial activities.
Tether has consistently maintained that USDT is fully backed by US dollars, but regulatory agencies have expressed doubts. Lutnick, the CEO of Cantor Fitzgerald, was questioned about his company's involvement with Tether during the hearing. The nominee's responses and the committee's follow-up questions will likely shape the future of stablecoin regulation in the US.
The hearing comes at a time when the crypto industry is facing increased scrutiny from regulators worldwide. Stablecoins, in particular, have been a focus of concern due to their potential use in money laundering and other illicit activities. The US government has been exploring ways to regulate stablecoins, and the hearing may provide insight into the direction of future policy.
The relationship between Cantor Fitzgerald and Tether has raised eyebrows in the market, as the stablecoin has faced criticism over its reserves and transparency. As the largest stablecoin by market capitalization, USDT is widely used in global crypto markets. The hearing may have implications for the broader crypto industry, as regulators continue to grapple with the challenges of stablecoin regulation.
