Howard Lutnick: Stablecoins Need Audits, But Tether Is Not the Villain

While the discussion covered a range of topics, a portion of the hearing focused on Tether USDT $0.9995 , the largest stablecoin by market value.

Lutnick’s company, Cantor Fitzgerald, manages large sums that back Tether. However, there has been no independent verification of how much fiat currency the firm holds on Tether’s behalf.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What is Ethereum & What is it Used For? (Animated Explanation)

SUBSCRIBE

ON YOUTUBE

Addressing this, Senator Maria Cantwell from Washington asked whether stablecoins should be subject to government audits.

Lutnick responded that he fully supports audits and believes stablecoins should be backed entirely by US Treasuries. When pressed on whether the US should implement a stricter process than what currently exists, he replied, “For sure”.

Concerns about Tether’s use in illegal activities were also raised. In response, Lutnick compared it to blaming Apple for criminals using iPhones, arguing that popular financial tools—including the US dollar—will be used for unlawful purposes. He also clarified that his company does not hold any equity in Tether.

Additionally, Lutnick expressed confidence that artificial intelligence (AI) will help authorities track transactions and identify illegal activity within blockchain systems. He suggested that AI could become a useful tool in reducing crime tied to digital assets.

Some lawmakers, including Senator Elizabeth Warren, have voiced concerns about Lutnick’s nomination due to Tether’s reported connections to illegal transactions. What were the concerns? Read the full story.