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Elizabeth Warren Inquires About Trump’s Commerce Secretary’s Decision Regarding Connections to Tether
U.S. Senator Elizabeth Warren has expressed concerns regarding the nomination of Cantor Fitzgerald CEO Howard Lutnick as Commerce Secretary, highlighting his firm’s connections to stablecoin issuer Tether.
In a letter dated Jan. 27, Warren conveyed “serious concern” about Lutnick’s association with Tether, labeling it as a “recognized facilitator of criminal activity” and “the cryptocurrency of choice for criminals.”
Although Lutnick has agreed to sell his stake in Cantor Fitzgerald—which owns a 5% interest in Tether and acts as its asset manager—Warren contends that this action does not alleviate worries about his long-standing ties to the company.
Warren Questions Lutnick’s Ability to Prioritize Public Interest
As the leading Democrat on the Senate Banking Committee, Warren questioned Lutnick’s ability to place public interests above personal financial connections if he is confirmed as Commerce Secretary.
If Lutnick receives confirmation during his Jan. 29 hearing, Warren cautioned that he would gain “extraordinary access” to President Donald Trump and key regulatory officials.
She asserted that this could enable him to influence policies impacting Tether and the broader cryptocurrency sector.
Warren has requested that Lutnick respond to 13 inquiries, including information about his current financial interest in Tether, conversations with Trump administration officials regarding the stablecoin issuer, and whether Cantor Fitzgerald conducted due diligence to ensure Tether adheres to Know Your Customer (KYC), Anti-Money Laundering (AML), and international sanctions regulations.
Warren has asked for a response by Feb. 10.
Despite her concerns, Warren will not participate in Lutnick’s confirmation hearing, as she is not a member of the Senate Commerce, Science, and Transportation Committee.
Nonetheless, she has been outspoken about her opposition to Tether, claiming that bad actors utilize its namesake stablecoin (USDT) for illegal activities, including money laundering, evading sanctions, and financing rogue regimes such as North Korea’s nuclear program.
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Neither Tether nor Cantor Fitzgerald has responded to requests for comments on Warren’s allegations.
In spite of Warren’s criticisms, Tether has actively collaborated with law enforcement agencies to combat illegal financial activities.
On Jan. 27, Tether partnered with blockchain firms Tron and TRM Labs to assist Spanish authorities in freezing $26.4 million in cryptocurrency linked to a pan-European money laundering scheme.
In September 2023, Tether announced that it had aided the FBI in recovering $6 million from scammers targeting U.S. citizens, freezing fraudulent wallets to prevent further exploitation.
Warren’s Ongoing Advocacy for Crypto Regulations
A long-time critic of the cryptocurrency industry, Warren has consistently advocated for stricter regulations.
She recently urged Trump’s Treasury Secretary nominee to consider implementing more robust oversight of cryptocurrencies.
That’s right – we should reduce government waste.
But we’re witnessing Trump and Musk’s plan in action: pausing federal funds that take school lunches away from preschoolers and ending Meals on Wheels for seniors. That’s not efficiency, it’s cruelty.
I’ve better ideas. https://t.co/spcJ7BF1OE pic.twitter.com/snnl05U3Pa— Elizabeth Warren (@SenWarren) January 28, 2025
In both 2022 and 2023, she introduced the Digital Asset Anti-Money Laundering Act, aiming to bring the cryptocurrency sector under existing AML and Counter-Terrorism Financing (CTF) frameworks.
Her proposed legislation has faced opposition from industry groups and national security experts.
The Chamber of Digital Commerce, along with 80 former military and intelligence officials, criticized the bill, warning that it could drive cryptocurrency innovation overseas while paradoxically hindering law enforcement’s ability to track illicit transactions.
The post Elizabeth Warren Questions Trump’s Commerce Secretary Nominee Over Ties to Tether appeared first on Cryptonews.
