Anti-Crypto Senator Warren Flags Trumps Commerce Pick Over Tether Ties
Senator Elizabeth Warren has raised concerns over Donald Trumps nomination for Commerce Secretary, citing major conflicts of interest. This is borne out of Howard Lutnicks position at Cantor Fitzgerald, a firm with a 5% stake in USDT stablecoin issuer Tether. Donald Trump nominated pro-crypto candidates in several positions, boosting market sentiments after years of uncertainty in the countrys policies.
Sen Warren Cites Links To Tether
In a recent letter addressed to Lutnick, Senator Warren probed his ties with the stablecoin issuer after the company was allegedly linked to illicit financing. According to her, links to the company can hinder his judgment in prioritizing the needs of the American public. The Senator had aggressively opposed crypto assets, particularly USDT, pointing to their lack of control and potential use in illegal transactions.
Warrens concerns also stretched to Lutnicks access to President Trump if confirmed. The conflict of interest arises because Trump and other officials will be at the fore of regulation. Although Lutnick agreed to divest his interest in the asset manager, she posed 13 questions to him to ascertain compliance and any discussions he might have had with the Presidents team on Tether.
In particular, your deep involvement with and support for Tether, a known facilitator of criminal activity that has been described as outlaws favorite cryptocurrency raises concerns about your judgment and ability to put the interests of the American people ahead of your own financial interests, she wrote.
Aside from Lutnicks 5% stake in Tether, he played a significant role in the companys adoption. Despite scandals on ties to illicit activities including including financing North Korean nuclear weapons programs, Mexican drug cartels, Russian arms companies, Middle Eastern terrorist groups, and Chinese manufacturers of chemicals used to make fentanyl Lutnick vouched for Tether when few others would.
Crypto Users Back Trumps Nominee
Despite Sen. Warrens probe, crypto enthusiasts backed President Trumps nominee, tipping better market conditions to foster innovation. The Trump administration is expected to usher in pro-crypto regulation in the United States after periods of chaos. In previous years, US regulators have filed lawsuits against crypto firms for non-compliance.
On their part, industry executives criticized the lack of rule clarity driving innovators to other markets. Anti-crypto lawmakers like Warren proposed stricter regulations for crypto firms to prevent illegal financing.
Read more: https://zycrypto.com/anti-crypto-senator-warren-flags-trumps-commerce-pick-over-tether-ties/
Text source: ZyCrypto
