Elizabeth Warren Grills Trump’s Commerce Pick Over Tether, Criminal Ties

• Senator Elizabeth Warren is pressing Commerce Secretary nominee Howard Lutnick over his ties to Tether.
• Warren raises concerns about potential conflicts of interest, citing Lutnick’s continued influence at Cantor Fitzgerald.
• Tether’s stablecoin USDT is under increasing regulatory scrutiny, particularly in the EU, over transparency concerns.

Senator Elizabeth Warren is challenging Commerce Secretary nominee Howard Lutnick over his connections to Tether, the issuer of USDT, as regulatory scrutiny around the stablecoin intensifies.

Warren Presses Lutnick Over Tether Ties

In a letter to Lutnick , Warren demanded clarity on his and Cantor Fitzgerald’s financial relationship with Tether, questioning whether they ensured compliance with anti-money laundering laws.

Despite Cantor Fitzgerald’s role as a key manager of Tether’s reserves, Lutnick did not disclose any crypto holdings in his financial filings. Warren also wanted details on any discussions he has had about Tether with incoming Trump administration officials.

Further fueling concerns, Warren pointed to Lutnick’s continued influence over Cantor Fitzgerald, where his sons remain employed. She questioned whether his divestment, should he be confirmed, would be sufficient to eliminate conflicts of interest.

Warren has given Lutnick until Feb. 10 to respond.

Conflict of Interest Questions Loom

Lutnick has pledged to fully divest from Tether if confirmed, but Warren argues that his deep ties to the stablecoin and its leadership raise ethical red flags.

She specifically cited his connections to Tether CFO Giancarlo Devasini and Cantor Fitzgerald’s lucrative deals with the stablecoin issuer. The firm has earned tens of millions managing Tether’s reserves and has acquired a minority stake in the company.

In December, Cantor Fitzgerald also brokered a $775 million investment from Tether into Rumble Inc., a right-wing video platform in which Lutnick himself holds a stake.

“The ties to Tether raise significant questions about your personal judgment and the conflicts of interest you will have [as Commerce Secretary],” Warren wrote.

Tether Faces Mounting Regulatory Pressure

Beyond Lutnick’s nomination, Tether itself is facing an increasingly hostile regulatory environment in both the U.S. and Europe.

Lawmakers have scrutinized the stablecoin over its alleged role in illicit activities, including transactions linked to North Korea, Mexican drug cartels, and Russian sanction evasion.

Despite Tether’s claims of being fully backed by reserves, regulators continue to raise concerns about transparency. The company has long resisted full audits, fueling skepticism about its financial stability.

The European Union’s Markets in Crypto-Assets (MiCA) framework has imposed strict new rules on stablecoins, including reserve and governance requirements.

As a result, USDT has been delisted from major platforms like Crypto.com and is now untradeable in the EU.

With scrutiny mounting on both sides of the Atlantic, Tether’s future and influence in U.S. politics remain uncertain.