U.S. Senator Warren questions Trump's Commerce Secretary nominee Lutnick's relationship with Tether

Odaily Planet Daily News - Senator Elizabeth Warren, a senior member of the U.S. Senate Banking Committee, questioned the relationship between Trump's nominee for Commerce Secretary Howard Lutnick and Tether, saying there is a potential conflict of interest. She criticized Tether's connection with sanctioned entities and highlighted broader concerns. Howard Lutnick will not directly oversee cryptocurrency regulation, but the department has issued reports on industry regulation. In addition, there is a view that Lutnick's close relationship with Trump may have an impact because his company's client Tether is facing strict scrutiny from U.S. regulators and investigators. Warren said: "I am deeply concerned about Lutnick's past work with a company that was investigated for its links to sanctioned entities such as Russian arms dealers and North Korea's nuclear weapons program. The Secretary of Commerce should fight for the interests of the United States, not focus on his own personal interests or the interests of former clients who undermine our national security." (Bloomberg) Last November, a spokesperson for Tether said: "Tether's relationship with Cantor Fitzgerald is a purely professional relationship based on the management of reserves. The claim that Howard Lutnick's joining the transition team somehow means that there is an impact on regulatory actions is nonsense." Lutnick said that he would resign from Cantor, BGC and Newmark after Senate approval. He said in a statement: "I intend to divest my interests in these companies to comply with the ethics of the US government and do not expect any arrangements involving the sale of shares on the open market." Previously, according to WSJ, Tether Chief Financial Officer Giancarlo Devasini privately stated earlier this year that Howard Lutnick would use his political influence to try to defuse the threats facing Tether. Lutnick owns a majority stake in Cantor, which holds the bulk of Tether’s $134 billion in assets. Cantor owns 5% of Tether.