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Ruholamin Haqshanas
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Ruholamin Haqshanas
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U.S. Senator Elizabeth Warren has raised concerns over Cantor Fitzgerald CEO Howard Lutnick’s nomination as Commerce Secretary, citing his firm’s ties to stablecoin issuer Tether.
In a letter dated Jan. 27, Warren expressed “serious concern” over Lutnick’s involvement with Tether, which she described as a “known facilitator of criminal activity” and “outlaws’ favorite cryptocurrency.”
While Lutnick has agreed to divest his stake in Cantor Fitzgerald—which holds a 5% interest in Tether and serves as its asset manager—Warren argues that this move does not eliminate concerns about his longstanding connections to the company.
Warren Questions Lutnick’s Ability to Prioritize Public Interest
As the top Democrat on the Senate Banking Committee, Warren questioned Lutnick’s ability to prioritize public interests over personal financial ties if confirmed as Commerce Secretary.
If Lutnick secures confirmation in his Jan. 29 hearing, Warren warned that he would gain “extraordinary access” to President Donald Trump and key regulatory officials.
This, she claimed, could position him to influence policies affecting Tether and the broader cryptocurrency industry.
She demanded that Lutnick answer 13 questions, including details about his current financial stake in Tether, discussions with Trump administration officials regarding the stablecoin issuer, and whether Cantor Fitzgerald conducted due diligence to ensure Tether complies with Know Your Customer (KYC), Anti-Money Laundering (AML), and international sanctions regulations.
Warren has requested 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.
However, she has been vocal about her opposition to Tether, arguing that bad actors use its namesake stablecoin (USDT) for illicit activities, including money laundering, sanctions evasion, and financing rogue regimes such as North Korea’s nuclear program.
Neither Tether nor Cantor Fitzgerald has responded to requests for comment on Warren’s claims.
Despite Warren’s criticism, Tether has actively collaborated with law enforcement agencies to combat illicit financial activities.
On Jan. 27, Tether worked alongside blockchain firms Tron and TRM Labs to assist Spanish authorities in freezing $26.4 million in crypto linked to a pan-European money laundering operation.
In September 2023, Tether announced that it had helped the FBI recover $6 million from scammers targeting U.S. citizens, freezing fraudulent wallets to prevent further exploitation.
Warren’s Continued Push for Crypto Regulations
A longtime critic of the crypto industry, Warren has repeatedly pushed for stricter regulations.
She recently urged Trump’s Treasury Secretary nominee to consider implementing more robust crypto oversight.
In both 2022 and 2023, she introduced the Digital Asset Anti-Money Laundering Act, aiming to bring the crypto sector under existing AML and Counter-Terrorism Financing (CTF) frameworks.
Her proposed bill 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 legislation, warning that it could drive crypto innovation overseas while paradoxically hindering law enforcement’s ability to track illicit transactions.
