Howard Lutnick, president of Cantor Fitzgerald and the election of President Donald Trump for the US Secretary of Commerce. Financial in Tether, the company that issues the largest stable in the world, USDTTTTT, USDTT, USDTT, USDTT, USDTT, USDTT. .
Lutnick appeared before the Senate Commerce, Science and Transportation Committee on January 29, the day after his testimony in the Senate Banking Committee.
Cantor Fitzgerald serves as Tether’s main custodian for the United States Treasury bonds, manages a significant part of his reserves and has a convertible debt issued by the Matrix of Tether.
The nature of the reserves that support the USDT has been worrying for the cryptographic industry for years. In 2023, Lutnick tried to minimize those concerns by attributing the name of Cantor, saying that, like his custodian, he knows that Tether is good for the money he says he is behind Stablecoin. During the audience, however, Lutnick seemed to soften some of the comments he made regarding this.
“Cantor Fitzgerald is not carrying out continuous diligence in Tether’s financial statements, but I think my statements were precise when they were made,” Lutnick said according to a published transcription, marking his previous statement that “Tether has each penny and can produce liquidity at a warning moment. “
In Polymket, the traigators are giving a 10% chance of Tether becoming insolvent in 2025, and 14% chances of being discouraged during the year, which would be the sign of problems in the issuer. A contract that asked the question about insolvency by 2024 averaged around 4% during the last quarter of the year.
Lutnick also confirmed that “Cantor Fitzgerald made an investment of convertible debt in the holder company that has the business of Tether Stablecoin in April 2024”. He clarified that this does not mean that Cantor has a property participation in the Stablecoin issuer.
“The investment of Cantor Fitzgerald debt in Tether does not constitute a capital participation,” he said, dismissing concerns that the ties of the brokerage company with the connection to the connection are deeper than the revealed.
Tether’s critics often say there should be an audit of the company’s books, given the importance that the USDT has in the broader cryptographic ecosystem. While Lutnick acknowledged that this should happen for stable issuers in US dollars, he was not demanding it for Tether.
When asked if he would publicly call Tether to submit to an independent audit within three months, he declared: “After my confirmation as secretary of Commerce, I will execute my duties in accordance with the laws and regulations of applicable government ethics.”
When addressing the questions about his influence on cryptographic regulation, Lutnick dismissed the accusations that he had committed to “calm the threats” against Tether.
“I have never suggested to anyone who would do something wrong about bonding,” he said. However, he warned that “the United States Congress should be careful not to undermine hegemony in dollars in Blockchain through legislation.”
