Howard Lutnick softens the stability of Tether’s stability, investment relationships during the Senate hearing
Howard Lutnick, chairman of Cantor Fitzgerald and President Donald Trump’s choice for the US Commerce secretary, recently played defense during another nomination hearing in front of Senate Democrats about investing in the financial giant In Tether, the company that releases the largest stablecoin in the world, USDT.
Lutnick appeared in front of the Senate Committee on Commerce, Science, and Transportation on January 29, the day after his Testimony to the Senate Banking Committee.
Cantor Fitzgerald serves as the main tether career for US wealth, manages a significant portion of its reserves, and holds a changing debt issued by Tether’s parent’s company.
The nature of reserves supporting USDT has been remembering the crypto industry for years. In 2023, Lutnick tried to overthrow concerns By attaching Cantor’s name to it, saying that as a caretaker, he knows Tether is good for the money he says is behind Stablecoin. During the hearing, however, Lutnick appeared to soften some of the comments he had made about it.
“Cantor Fitzgerald does not carry out ongoing diligence in Tether’s financial statements, but I believe my statements are accurate when made,” Lutnick said according to a published transcript, translating his previous pag -The “Tether has every cent, and it can produce liquidity in a moment.”
In the polymarket, Bettors provide a 10% chance that Tether will be worthless in 2025, and a 14% chance It is de-peg for the year, which will be a sign of the problem with the giver. A contract Asking About insolvency for the 2024 average of around 4% in the last quarter of the year.
Lutnick also confirmed that “Cantor Fitzgerald has made a replaced debt investment in the company holding a businessman of Tether Stablecoin business in April 2024.” He made it clear that this does not mean that Cantor has a stake of ownership in the Stablecoin issuer.
“Cantor Fitzgerald’s debt investment in Tether does not develop an interest in equity,” he said, removing concerns that the relationship of the broker’s firm ran deeper than reveal.
Tether’s critics often say that there should be a audience of company books, given the importance that USDT has in the wider crypto ecosystem. While Lutnick acknowledged that this should happen for those who gave the US dollar, he stopped asking for Tether’s request for Tether.
When asked if he would call Tether publicly to submit to an independent audit for three months, he said: “In my confirmation as Commercial Secretary, I will faithfully perform my duties consistent with the appropriate laws and government regulation. “
Responding to questions about his influence on crypto regulation, Lutnick removed the allegations that he had promised to “break the threats” against Tether.
“I have never suggested to anyone that I will do anything improperly with respect to Tether,” he said. However, he warned that “the US Congress should be careful not to break the hegemony of the dollar in the blockchain by law.”
