US Lawmakers Pressure Commerce Secretary Nominee Howard Lutnick on Tether and Illicit Finance Issue

BlockBeats News, January 30th, according to The Block, Howard Lutnick, the nominee for U.S. Secretary of Commerce, faced questions about his company's relationship with Tether during a hearing before the Senate Commerce Committee, amid concerns in the market about Tether's reserves and allegations that the stablecoin could be used for illicit financial activities.

During 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 Tether's custodian, and USDT is the largest market cap stablecoin used globally.

Tether has been under scrutiny by regulatory agencies, with some questioning whether USDT is backed 1:1 by U.S. dollars. Tether has consistently denied these allegations.