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Donald Trump's nominee for Secretary of Commerce and Cantor Fitzgerald CEO Howard Lutnick spoke about Tether (USDT) in the Senate!
Howard Lutnick, nominated by US President Donald Trump for the US Department of Commerce, strongly supports the strict regulation of stablecoins, stating that US dollar-backed stablecoins should be fully supported by the US Treasury.
Lutnick recently emphasized the importance of auditing to ensure that stablecoins are backed by 1:1 with US Treasury bonds during a Senate hearing.
Lutnick said, “I believe that U.S. dollar stablecoins should be regulated and backed 100% by U.S. Treasuries.” He also noted the importance of issuers fulfilling their commitments to depositors and ensuring the stability of withdrawal values.
Lutnick, who heads the global financial services firm Cantor Fitzgerald, answered 'No' to the question of whether the company has any stake in Tether. However, Cantor Fitzgerald announced that it has a convertible bond with Tether, but did not disclose further details about its terms or structure.
Tether has faced scrutiny, including from regulators, over its reserves in response to some questioning the one-to-one dollar backing for USDT. Tether has consistently denied these claims. Over the years, Tether has released verification reports, but it has faced criticism regarding its legitimacy when compared to audits.