US Senator Warren pressures Commerce Secretary nominee Lutnick to explain his relationship with Tether

Odaily Planet Daily News: US Democratic Senator Elizabeth Warren is pressuring Howard Lutnick, the Commerce Secretary nominated by Trump, to explain his relationship with Cantor Fitzgerald LP and Tether, which 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 made in this stablecoin issuer. She also requested Lutnick to provide a detailed explanation of any due diligence conducted and whether they have verified Tether's compliance with the "KYC" rules under the Bank Secrecy Act, international sanctions, and anti money laundering laws. Lutnick did not list Tether or any other cryptocurrency investments in his financial disclosure form, but listed assets worth at least $806 million and over 800 legal entities in which he is involved. Cantor Fitzgerald holds shares in Tether and plays a role in its operations. Lutnick stated in his ethics agreement that if approved by the US Senate, he will divest all of his shares in Cantor Fitzgerald and its subsidiaries. Warren questioned in the letter whether these measures were sufficient to avoid conflicts of interest and pointed out that Lutnick is a prominent supporter of Tether and his relationship with Tether's 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 has stated that it is working with law enforcement to freeze the proceeds of illegal activities. In addition, Warren hopes that Lutnick, co chair of Trump's transition team, will describe any discussions he has with new government officials regarding Tether. She also pointed out that Lutnick maintains a personal relationship with his company (both of his sons work at Cantor Fitzgerald Group) and is concerned that Lutnick may continue to exert control after divesting his holdings. (Bloomberg)