Lawmakers grilled Lutnick about Tether’s role in potential illicit finance, citing past allegations of money laundering and terror financing. Despite denials from Tether’s CEO Paolo Ardoino, concerns remain over the company’s lack of professional audits and its past $41 million settlement with the Commodity Futures Trading Commission.
Lutnick stated that stablecoins should be “completely backed by U.S. Treasuries, 100%” and subject to regular audits. He defended Tether against accusations, arguing that traditional fiat currencies are still the primary tool for illicit transactions.
To address conflicts of interest, Lutnick confirmed he would divest from Cantor Fitzgerald, a Tether custodian, if confirmed as Commerce Secretary. His involvement in shaping digital asset policies under Trump’s administration could have significant implications for stablecoin regulations.
Lutnick’s confirmation and the broader regulatory response to stablecoins could shape the future of digital asset policies in the U.S. Investors and crypto advocates are watching closely as stablecoins like USDT remain under regulatory scrutiny.
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