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Senator Elizabeth Warren has expressed serious concerns about Howard Lutnick’s “personal connections” with Tether and its affiliates. In a letter to the nominee for U.S. Secretary of Commerce, she questioned Tether’s relationship with Cantor Fitzgerald, the firm where Lutnick served as CEO.

Warren labeled Tether as a major enabler of criminal activity, calling USDT the preferred cryptocurrency for bad actors.

“Even though you have agreed to divest from Cantor Fitzgerald, which holds 5% of Tether’s shares and manages its assets, this does not eliminate concerns about your deep personal ties to the company and its affiliates,” she wrote.

The senator doubted Lutnick’s ability to prioritize American interests over personal gain if confirmed. She warned that, if appointed, Lutnick would have extraordinary access to President Trump and key regulators, potentially influencing crypto and Tether-related policies.

She demanded answers by February 10, asking Lutnick to disclose details on his Tether holdings and any conversations with the Trump administration regarding the company.

Warren also requested information on whether Cantor Fitzgerald had conducted compliance checks on Tether.

While Warren is not on the Senate Commerce Committee responsible for confirming Lutnick, she has been a vocal critic of cryptocurrencies. She previously pushed a bill to extend anti-money laundering laws (BSA/KYC) to miners, validators, and wallet operators.

In September 2024, Tether, TRON, and TRM Labs launched the T3 Financial Crime Unit to combat illicit activity. The firm also assisted the U.S. DOJ in freezing over $6 million tied to Southeast Asian crypto scams.

Lutnick defended Cantor Fitzgerald’s relationship with Tether, stating it was purely professional and limited to asset management.

In October, the WSJ reported that U.S. authorities were investigating Tether for potential sanctions violations and money laundering concerns. CEO Paolo Ardoino denied these claims.