During the hearing before the U.S. Senate, billionaire Howard Lutnick – a candidate for the position of Secretary of Commerce under President Donald Trump – spoke in defense of Tether, but also supported auditing stablecoins to ensure financial transparency.
Lutnick: Stablecoin Needs 100% Audit
#Lutnick is currently the CEO of Cantor Fitzgerald, a company holding billions of USD in collateral for Tether – the largest stablecoin in the world. However, until now, no independent organization has confirmed this asset amount.
When Senator Maria Cantwell (D-WA) questioned the lack of transparency in stablecoin reserves, Lutnick asserted:
👉 USD stablecoin should be audited and must be fully backed by U.S. Treasury Bonds.
👉 He supports a stricter auditing process than what is currently in place.
Tether Under Suspicion, But Lutnick Strongly Denies
#Tether was controversial when accused of being involved in illegal financial activities. Senator Elizabeth Warren (D-MA) recently criticized Lutnick for his ties to Tether, claiming this poses a conflict of interest risk if he holds the position of Secretary of Commerce.
However, Lutnick dismissed this accusation when questioned during the hearing. He likened blaming Tether to "blaming Apple for crimes committed using iPhones." Lutnick also asserted that Cantor Fitzgerald does not own shares in Tether.
In addition, Lutnick expressed confidence that the U.S. government will soon adopt AI to scan blockchain data and eliminate criminals using crypto for illegal purposes.
The Senate Is Not Too Concerned About Crypto
Although the topic of Tether is controversial, during the hours-long hearing, it only occupied a small part. Interestingly, Sen. Cantwell – the only one to ask questions about crypto – even identified herself as a supporter of cryptocurrency.
In summary, although questioned about his relationship with Tether, Lutnick did not encounter too many obstacles during the hearing. The auditing of stablecoins may soon become a trend, but Lutnick's support for Tether remains unchanged.
