3 min read

TAKE A BREAK

Commerce Secretary Lutnick Calls for Stablecoin Audits Amid Tether Scrutiny

Business
Updated: 1/30/2025
Commerce Secretary Lutnick Calls for Stablecoin Audits Amid Tether Scrutiny
#Stablecoins #CryptoRegulation #USDT
Howard Lutnick, President Trump’s nominee for U.S. Commerce Secretary, faced intense questioning from lawmakers over his ties to Tether and concerns about stablecoin oversight. During a Senate hearing, he acknowledged the need for audits of U.S. dollar stablecoins, a long-debated issue in the crypto space.

Stablecoin Scrutiny & Lawmaker Concerns

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’s Stance on USDT & Audits

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.

Conflicts of Interest & Resignation from Cantor Fitzgerald

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.

What’s Next for Stablecoin Regulation?

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.

Commerce