Anti-Crypto Senator Warren Flags Trump’s Commerce Pick Over Tether Ties

Senator Elizabeth Warren has raised concerns over Donald Trump’s nomination for Commerce Secretary, citing major conflicts of interest. This is borne out of Howard Lutnick’s position at Cantor Fitzgerald, a firm with a 5% stake in USDT stablecoin issuer Tether. Donald Trump nominated pro-crypto candidates in several positions, boosting market sentiments after years of uncertainty in the country’s policies. 

Sen Warren Cites Links To Tether

In a recent letter addressed to Lutnick, Senator Warren probed his ties with the stablecoin issuer after the company was allegedly linked to illicit financing. According to her, links to the company can hinder his judgment in prioritizing the needs of the American public. The Senator had aggressively opposed crypto assets, particularly USDT, pointing to their lack of control and potential use in illegal transactions. 

Warren’s concerns also stretched to Lutnick’s access to President Trump if confirmed. The conflict of interest arises because Trump and other officials will be at the fore of regulation. Although Lutnick agreed to divest his interest in the asset manager, she posed 13 questions to him to ascertain compliance and any discussions he might have had with the President’s team on Tether. 

“In particular, your deep involvement with and support for Tether, a known facilitator of criminal activity that has been described as ‘outlaws’ favorite cryptocurrency’ raises concerns about your judgment and ability to put the interests of the American people ahead of your own financial interests,” she wrote. 

Aside from Lutnick’s 5% stake in Tether, he played a significant role in the company’s adoption. Despite scandals on ties to illicit activities including “…including financing North Korean nuclear weapons programs, Mexican drug cartels, Russian arms companies, Middle Eastern terrorist groups, and Chinese manufacturers of chemicals used to make fentanyl Lutnick ‘vouched for Tether when ‘few others would.”

Crypto Users Back Trump’s Nominee

Despite Sen. Warren’s probe, crypto enthusiasts backed President Trump’s nominee, tipping better market conditions to foster innovation. The Trump administration is expected to usher in pro-crypto regulation in the United States after periods of “chaos.” In previous years, US regulators have filed lawsuits against crypto firms for non-compliance.

On their part, industry executives criticized the lack of rule clarity driving innovators to other markets. Anti-crypto lawmakers like Warren proposed stricter regulations for crypto firms to prevent illegal financing.