Howard Lutnick: Tether’s Big Backer

Howard Lutnick, who is President Donald Trump's nominee to be secretary of Commerce, is drawing scrutiny on his relationship with Tether from Senator Elizabeth Warren

Sen. Elizabeth Warren (D-MA) is scrutinizing Howard Lutnick, President Donald Trump's nominee for secretary of Commerce, over his firm's relationship with Tether.

In a letter to Lutnick, who is set to testify before the Senate Commerce Committee on Wednesday, Warren highlighted Tether's role in the crypto operation, which she said has "clear ties to criminal activity."

"You played a critical role in the rise of Tether, a shadowy crypto firm with profits exceeding $7.7 billion in 2024," the Massachusetts Democrat wrote.

Cantor Fitzgerald serves as the U.S. Treasuries dealer for Tether, the world's leading stablecoin issuer, and the main custodian of its Treasury reserves.

Warren suggested that Cantor shares responsibility for illicit abuse of Tether's stablecoin (USDT) by criminals and terrorists.

"The use of Tether’s stablecoin has been the subject of over 150 investigations across four continents, including here with the Department of Justice and the Department of the Treasury," she wrote to Lutnick, who led Trump's transition team as he returned to the White House. 

Lutnick testified on Wednesday that Cantor does not own a direct equity stake in Tether, though the firm does have a convertible bond.

However, Warren's letter also pointed to testimony from Tether CEO Paolo Ardoino, who stated that Cantor owns "a piece of Tether."

"I think we can be very clear on this. We don't expect any political favors by anyone," Ardoino said of Lutnick's political rise.

During the confirmation hearing, Lutnick expressed support for greater U.S. auditing demands on stablecoin issuers.