Odaily News Senator Elizabeth Warren, a senior member of the Senate Banking Committee, questioned the relationship between Trump's nominee for Commerce Secretary Howard Lutnick and Tether, saying there was a potential conflict of interest. She criticized Tether's ties to sanctioned entities and highlighted broader concerns.
Howard Lutnick will not directly oversee cryptocurrency regulation, but the department has issued reports on industry regulation. In addition, there is a view that Lutnick's close relationship with Trump may have an impact because his company's client Tether is facing close scrutiny from US regulators and investigators. Warren said: "I am deeply concerned about Lutnick's past work with a company that has been investigated for its ties to sanctioned entities such as Russian arms dealers and North Korea's nuclear weapons program. The Secretary of Commerce should fight for the interests of the United States, not focus on his own personal interests or the interests of former clients who undermine our national security." (Bloomberg)
Last November, a Tether spokesperson said: “Tether’s relationship with Cantor Fitzgerald is a purely professional relationship based on the management of reserves. The claim that Howard Lutnick’s joining the transition team somehow means that he has an impact on regulatory actions is nonsense.”
Lutnick said he will resign from Cantor, BGC and Newmark upon Senate approval, saying in a statement: "I intend to divest my interests in these companies to comply with U.S. government ethics regulations and do not anticipate any arrangement involving the sale of stock in the open market."
Earlier, according to WSJ, Tether CFO Giancarlo Devasini privately stated earlier this year that Howard Lutnick would use his political influence to try to defuse the threats facing Tether. Lutnick owns a majority stake in Cantor, which holds most of Tether's $134 billion in assets. Cantor owns 5% of Tether.