US lawmakers pressure Commerce Secretary nominee Howard Lutnick on Tether and illegal finance issues

On January 30th, according to The Block, Howard Lutnick, the nominee for US Secretary of Commerce, faced questioning during a Senate Commerce Committee hearing about his company's relationship with Tether due to market concerns over Tether reserves and allegations that the stablecoin may be used for illegal financial activities. At Wednesday's hearing, Democratic Senator Maria Cantwell raised a series of questions about Lutnick and his company Cantor Fitzgerald's relationship with Tether. Since the end of 2021, Cantor Fitzgerald has been the custodian of Tether, while USDT is the largest stablecoin by market value and is used globally. Tether has been facing regulatory scrutiny, with some questioning whether USDT has a 1:1 reserve of US dollars. Tether has consistently denied these allegations.