Senator Warren Questions Commerce Nominee's Ties To Tether

According to Odaily, U.S. Senator Elizabeth Warren has raised concerns about potential conflicts of interest involving Howard Lutnick, the nominee for Commerce Secretary by former President Donald Trump, and his connections with Tether. Warren criticized Tether's links to sanctioned entities and highlighted broader issues. Although Lutnick will not directly oversee cryptocurrency regulation, the department has issued reports on industry oversight. There are concerns that Lutnick's close relationship with Trump could influence his actions, especially since Tether, a client of Lutnick's company, is under scrutiny by U.S. regulators and investigators. Warren expressed her worries about Lutnick's past work with a company investigated for ties to sanctioned entities like Russian arms dealers and North Korea's nuclear program. She emphasized that the Commerce Secretary should prioritize American interests over personal gains or those of former clients that threaten national security. In November of last year, a Tether spokesperson stated that the relationship with Cantor Fitzgerald, Lutnick's company, is purely professional and based on reserve management. They dismissed claims that Lutnick's involvement in the transition team could influence regulatory actions as baseless. Lutnick has announced his intention to resign from his roles at Cantor, BGC, and Newmark upon Senate approval, and plans to divest his interests in these companies to comply with U.S. government ethics standards. Earlier reports from the Wall Street Journal indicated that Tether's CFO, Giancarlo Devasini, privately suggested that Lutnick might use his political influence to mitigate threats facing Tether. Lutnick holds a majority stake in Cantor, which manages a significant portion of Tether's $134 billion assets and owns 5% of Tether's shares.