U.S. Senator Warren puts pressure on Commerce Secretary nominee Lutnick to explain his relationship with Tether
On January 29th, it was reported that Democratic Senator Elizabeth Warren was pressuring Howard Lutnick, the nominee for Trump's Commerce Secretary, to disclose his and his company Cantor Fitzgerald LP's relationship with Tether. This has raised questions about potential conflicts of interest before Lutnick's confirmation hearing on Wednesday.
In a letter sent to Lutnick on Tuesday, Warren inquired about his relationship with Tether Holdings Ltd, including the amount of investment he and Cantor Fitzgerald had in the stablecoin issuer. She also requested that Lutnick provide detailed information about any due diligence conducted and whether they verified whether Tether complied with the "KYC" rules, international sanctions, and anti-money laundering laws.
Lutnick did not list Tether or any other cryptocurrency investments in his financial disclosures, but listed assets worth at least $806 million and over 800 corporate entities he is involved with. Cantor Fitzgerald holds shares in Tether and plays a role in its operations. Lutnick stated in his ethics agreement that he will divest all his holdings in Cantor Fitzgerald and its affiliates if approved by the US Senate.
Warren questioned whether these measures were enough to avoid conflicts of interest and pointed out that Lutnick is a prominent supporter of Tether and has a relationship with Tether billionaire CFO Giancarlo Devasini.
Tether stated in a statement that it complies with KYC rules and voluntarily cooperates with law enforcement agencies to prevent illegal activities. Tether denies any connection with criminals and says it is cooperating with law enforcement to freeze the proceeds of illegal activities.
In addition, Warren wants Trump's transition team co-chair Lutnick to describe any discussions he had with new government officials about Tether. She also noted that Lutnick maintains a personal relationship with his company (his two sons work at Cantor Fitzgerald Group) and is concerned that he may continue to exert control even after divesting his holdings. (Bloomberg)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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