Quickly understand the history and background of various well-known coins

Warren Challenges Lutnick's Ties to Tether Amid Crypto Regulation Push

Coin WorldWednesday, Jan 29, 2025 10:06 am ET

1min read

U.S. Senator Elizabeth Warren has expressed serious concerns about Howard Lutnick, President Donald Trump’s nominee for Commerce Secretary, due to his firm's connections with stablecoin issuer Tether. In a letter dated January 27, Warren questioned Lutnick's ability to prioritize public interests given Cantor Fitzgerald's financial stake in Tether and its role as the stablecoin's asset manager.

Lutnick has agreed to divest his interest in Cantor Fitzgerald, but Warren asserted that this action does not resolve lingering concerns about his "deep personal ties" to Tether. She highlighted that, if confirmed, Lutnick would gain "extraordinary access" to key policymakers who regulate digital assets, potentially influencing decisions affecting the cryptocurrency industry.

Warren, known for her critical stance on cryptocurrencies, asked Lutnick to provide answers to 13 detailed questions by February 10. These include disclosures about his current financial stake in Tether, as well as any communications with Trump administration officials regarding the stablecoin issuer.

The senator also demanded clarity on whether Cantor Fitzgerald conducted due diligence to ensure Tether complies with Know Your Customer (KYC) requirements under the Bank Secrecy Act, as well as adherence to international sanctions and anti-money laundering (AML) laws.

Tether, often scrutinized for its role in the digital asset ecosystem, has faced accusations of facilitating illegal activities, including money laundering and sanctions evasion. However, Warren's criticism comes amid efforts by the company to support law enforcement initiatives.

Tether has previously collaborated with blockchain firms Tron and TRM Labs to assist Spanish authorities in freezing $26.4 million in cryptocurrency linked to a Europe-wide money laundering operation. The stablecoin issuer has also previously worked with the FBI to recover $6 million from scammers targeting American citizens.

Warren's letter reiterates her call for stronger crypto regulations, citing risks of bad actors exploiting digital currencies for nefarious purposes. She has previously introduced the Digital Asset Anti-Money Laundering Act in 2022 and 2023, pushing for tighter oversight of the crypto industry.

The Senate Commerce, Science, and Transportation Committee is scheduled to hold Lutnick's confirmation hearing on January 29, where his responses and potential influence on crypto regulations will likely face scrutiny.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.