Senator Elizabeth Warren has raised significant concerns about Howard Lutnick, who has been nominated by President Donald Trump for the role of Commerce Secretary, specifically questioning his financial connections to Tether.
Ahead of Lutnick’s upcoming Senate confirmation hearing, Warren took the proactive step of sending him a letter. In this, she questioned whether he could serve with impartiality given his ties to Tether (USDT).
Warren drew attention to Lutnick’s position as the CEO of Cantor Fitzgerald, a company that is deeply involved with Tether, owning about a 5% stake in it. She voiced serious concerns regarding Tether’s alleged links with illegal activities, which reportedly include North Korean arms programs, drug cartels, and terrorist organizations.
“I write to express serious concern about your nomination to become Secretary of the Department of Commerce,” Warren stated. “Your deep involvement with and support for Tether, which has been dubbed ‘outlaws’ favorite cryptocurrency,’ raises questions about your capacity to prioritize the interests of the American public over your personal financial interests.”
Tether’s due diligence
Within Warren’s letter, she requested comprehensive details concerning Lutnick’s individual and business investments in Tether. She also inquired about any discussions he might have had with Trump administration officials about Tether, and whether Cantor Fitzgerald has taken necessary steps to assess the company’s adherence to financial laws, including those against money laundering and terrorism financing.
Warren pointed out reports suggesting Lutnick might have leveraged his role as co-chair of Trump’s transition team to benefit Cantor Fitzgerald’s business ventures, notably by strengthening ties with Tether.
“Even after the election, and following your nomination as President Trump’s preferred Commerce Secretary, Cantor Fitzgerald continued to deepen its connections with Tether, reportedly positioning itself as the foundation of a multi-billion-dollar Bitcoin lending initiative,” Warren highlighted.
Lutnick’s nomination surfaces as Cantor Fitzgerald gears up to roll out a $2 billion Bitcoin (BTC) lending project backed by Tether, potentially growing into a venture valued at tens of billions. Given the heightened regulatory scrutiny on Tether, Warren referenced a statement from Tether’s CFO, Giancarlo Devasini, made in 2024, wherein he allegedly indicated Lutnick’s influence could be pivotal in “defusing threats facing Tether.”
“You cannot act as a proponent for Tether while unbiasedly fulfilling the Department of Commerce’s objective to foster economic growth and opportunity for all communities,” Warren emphasized.
Warren’s 13 Questions
Accompanying her letter to Lutnick were 13 pointed questions seeking elaboration on his financial ties with Tether. She set a deadline of February 10 for responses, which should address potential conflicts of interest and outline regulatory matters concerning Tether’s operations.
The questions aim to clarify the extent of Lutnick’s and Cantor Fitzgerald’s financial interest in Tether, the vetting process they undertook before onboarding Tether as a client, and whether requisite measures were taken to ensure Tether’s compliance with anti-money laundering and sanctions regulations.
Additionally, Warren sought information about Lutnick’s relationship with Tether CFO Giancarlo Devasini and whether there were any discussions about Tether with Trump transition teams.
Several inquiries were directed towards Lutnick’s family, including any positions he might have allocated to them at Cantor Fitzgerald.
Some questions delved into Tether’s alleged involvement in criminal investigations and whether Lutnick would refrain from intervening in ongoing probes by the Department of Justice and Treasury.
Warren also queried whether Lutnick’s requested ethics waiver might permit him to sway decisions impacting Cantor Fitzgerald, in light of his ongoing corporate affiliations.
Lutnick’s confirmation
As Lutnick’s confirmation is still pending, should he be approved, he would lead a department charged with shaping trade policy, economic development, and regulating business. His nomination reflects Trump’s growing endorsement of the crypto industry, evident in his support for digital asset ventures and proposed positions on cryptocurrency policy within the White House.
“If you are confirmed as Commerce Secretary,” Warren articulated, “You will gain exceptional access to President Trump and other top officials tasked with regulating Tether, placing you in a pivotal position to impact policies that may have direct or indirect repercussions for Tether and the wider crypto industry.”
