Elizabeth Warren rebuked Lutnick for her position in favor of cryptocurrencies.
The Democratic Senator, enemy of cryptocurrencies, opposes Trump’s nomination.
Democratic Senator Elizabeth Warren is pressing Howard Lutnick, CEO of Cantor Fitzgerald, due to the connections of her investment firm with Tether, the company behind the Stablecoin USDT
The questions of the legislator were revealed in the midst of the Lutnick nomination as secretary of commerce in the government of Donald Trump. A process that requires that a confirmation audience be carried out in the Senate.
As part of the process, Warren – who is the most rank Democrat in the Senate Banking Committee— He sent a letter To Lutnick on January 27.
In her letter, the legislator expressed serious concerns about the deep participation and support that the firm Cantor Fitzgerald offers to Tethera company that the senator qualifies as “a well -known facilitator of criminal activity.”
“You played a fundamental role in Tether’s rise, a dark cryptocurrency company with profits that exceed 7.7 billion dollars in 2024,” Warren wrote.
It refers to the status of Tether investor who has the firm Cantor Fitzgerald -already the open position in favor of Bitcoin and the Lutnick Stablecoins -, suggesting that the businessman Share responsibility “For the illicit use of USDT by criminals and terrorists.”
According to Warren, if Lutnick is confirmed at his hearing, he will have extraordinary access to President Trump and other officials responsible for Regular Tether.
Hence, he questions his “ability to put the interests of the US people before” their personal financial interests, if confirmed as secretary of the Department of Commerce.
Warren argues that this position would place him in a position that would allow him to influence policies that They could directly or indirectly affect Tether Already the entire cryptocurrency industry.
The senator asked that Lutnick Answer 13 questionsincluding those who ask that you clarify your current financial participation in Tether, and to report on any conversation you have with Trump administration officials about Tether.
He also asked if Cantor Fitzgerald conducted an investigation to confirm that Tether complies with the KYC rules (meet your client), in addition to investigating whether the company complies with the Bank Secret Law, international sanctions and laws against money laundering.
Massachusetts senator, who is known from the administration of Joe Biden for her strong opposition to Bitcoin, wants answers to her questions before February 10.
Warren makes this demand, although It is not part of the Senate Trade, Science and Transportation Commission, which celebrated The Lutnick Confirmation Hearing today, January 29.
Lutnick defends Tether against the Senate
In response to the call, Lutnick appeared on Wednesday before the aforementioned Senate commission, chaired by Ted Cruz. There he answered questions about Trump’s commercial and tariff agendas, as well as about his own commercial links With the cryptocurrency industry and with China.
During his participation, Lutnick promised, in the first place, to leave his position at Cantor Fitzgerald.
He also defended Tether’s activity, indicating that the only reason the government can detect and track the illegal activity with USDT is “because of its inherent transparency.”
He recalled that the company has helped the authorities to end illegal operations and usually freeze funds related to these activities.
Based on this, he raised the idea of making more intensive audit demands and the use of artificial intelligence tools to enforce the law and eradicate illegal activity with Stablecoins.
Our artificial intelligence tools will eliminate the illicit activity of stable currencies in a year or two. Our technology will end it, and that is what we should demand.
Howard Lutnick.
Lutnick added that when the same individuals involved in illegal activities use dollars or euros“We don’t find out.” He suggested, consequently, that stable currencies backed by the United States “must allow security forces to enter their models so that we can find and catch illegal activities.”
