Howard Lutnick, Cantor Fitzgerald's CEO and Donald Trump's nominee for US Commerce Secretary, pushed back against concerns over stablecoins.
During his Senate confirmation hearing on Wednesday, Lutnick rejected the idea that the stablecoin issuer is enabling crime, arguing that bad actors will always find ways to misuse financial products."
"It's like blaming Apple because criminals use Apple phones. It's just a product," he told the Senate Commerce Committee. Notably, Lutnick's firm holds a convertible bond in Tether.
Sen. Maria Cantwell pressed Lutnick on what he planned to do about criminals using Tether.
He responded, "Tether did no business with anyone that wasn't KYC-appropriate." When asked why regulators weren't taking a tougher stance on stablecoins, he compared the situation to traditional finance. "We don't pick on the US Treasury when criminals use the US dollar."
Lutnick added that he has asked Tether to comply with all US law enforcement agencies.
While defending Tether, Lutnick noted the need for greater oversight. "I believe US dollar stablecoins should be audited," he said, backing calls for independent verification of one-to-one reserves.
He added that artificial intelligence will eventually "rid the world of criminals" using blockchain for illicit activity.
Lutnick also pedged to divest from all his crypto holdings within 90 days if confirmed.
"I will sell all of my interest, all of my business interests, all of my assets, everything," he told lawmakers.
Trump nominates Lutnick
In November 2024, President-elect Donald Trump announced his intention to nominate Lutnick as the United States Secretary of Commerce. Lutnick has been a vocal supporter of Trump's economic policies, particularly the implementation of broad tariffs.
Lutnick is an American businessman renowned for his leadership of Cantor Fitzgerald. He graduated from Haverford College in 1983 with a Bachelor of Arts in economics and joined Cantor Fitzgerald the same year. By 1991, he was appointed President and CEO, and in 1996, he became Chairman.
Under Lutnick's leadership, Cantor Fitzgerald underwent significant restructuring. In 2004, the firm separated its voice brokerage business to create BGC Partners, and in 2008, Lutnick led the merger of BGC and eSpeed, forming BGC Partners, Inc. He also played a pivotal role in making the video platform Rumble public through a SPAC deal. He was involved in the SPAC merger of the earth observation company Satellogic in January 2022.
