Senator Elizabeth Warren has demanded answers from Howard Lutnick, President Donald Trump’s nominee for Commerce Secretary, regarding his financial ties to Tether.
Ahead of Lutnick’s Senate confirmation hearing, Warren sent a letter questioning his ability to serve impartially while maintaining connections to Tether (USDT).
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 alleged 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
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.
She 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.
“Even after the election, and after you were tapped as President Trump’s chosen Commerce Secretary, Cantor Fitzgerald continued to deepen its ties to Tether, reportedly agreeing to serve as the backbone of a multi-billion-dollar Bitcoin lending program,” Warren wrote.
Lutnick’s nomination comes as Cantor Fitzgerald prepares to launch a $2 billion Bitcoin (BTC) lending initiative backed by Tether, a project that could expand to tens of billions.
As regulatory scrutiny around Tether increases, Warren highlighted a 2024 comment from Tether’s CFO, Giancarlo Devasini, who reportedly claimed Lutnick would use his influence to “defuse threats facing Tether.”
“You cannot serve as a booster for Tether while impartially fulfilling the Department of Commerce’s mission to ‘create the conditions for economic growth and opportunity for all communities,’” Warren stated.
Warren’s 13 Questions
Warren sent Lutnick a list of 13 detailed questions, seeking clarification on his financial relationship with Tether. She requested responses by Feb. 10, focusing on potential conflicts of interest and regulatory concerns surrounding Tether’s operations.
The questions seek clarity on Lutnick’s and Cantor Fitzgerald’s total financial stake in Tether, the due diligence conducted before accepting Tether as a client, and whether they ensured the company complied with anti-money laundering and sanctions laws.
Warren also probes Lutnick’s relationship with Tether CFO Giancarlo Devasini and whether he discussed Tether with Trump transition officials.
Some of the questions focused on Lutnick’s family, including the roles he left for them at Cantor Fitzgerald.
Other questions focus on Tether’s alleged criminal investigation and whether Lutnick will pledge not to interfere with ongoing probes by the Department of Justice and Treasury.
Warren also questions whether Lutnick’s requested ethics waiver could allow him to influence decisions affecting Cantor Fitzgerald, despite maintaining corporate ties.
Lutnick’s confirmation
At the time of writing, Lutnick faces confirmation. If confirmed, Lutnick would oversee a department responsible for trade policy, economic development, and business regulation. His nomination underscores Trump’s increasing support for the crypto sector, which has included backing for digital asset initiatives and proposed White House crypto policy positions.
“If you are confirmed as Commerce Secretary,” wrote Warren, “You will have extraordinary access to President Trump and other high-level officials responsible for regulating Tether, putting you in a position to influence policies that may directly or indirectly impact Tether and the entire cryptocurrency industry. “
