Warren vs. Lutnick: The Crypto Showdown You Can’t Miss! 🍿

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In a move that could only be described as audacious, Senator Elizabeth Warren has taken up her quill to pen a letter to Howard Lutnick, President Donald Trump’s nominee for Commerce Secretary. The subject? His rather cozy financial dalliances with Tether, the cryptocurrency that’s been accused of being the Robin Hood of the underworld—stealing from the law-abiding and giving to the outlaws. 🏴‍☠️

Warren, ever the vigilant watchdog, has raised eyebrows over Lutnick’s role as CEO of Cantor Fitzgerald, a company that’s not just flirting with Tether but seems to be in a full-blown relationship, holding a 5% stake. She’s particularly concerned about Tether’s alleged involvement in activities that would make even the most hardened criminal blush—North Korean weapons programs, drug cartels, and terrorist groups. Quite the resume, isn’t it? 😬

“I write to express serious concern about your nomination to become Secretary of the Department of Commerce,” Warren wrote, her words dripping with the kind of sarcasm that could only be born of years of political theater. “Your deep involvement with and support for Tether, a known facilitator of criminal activity that has been described as ‘outlaws’ favorite cryptocurrency,’ raises concerns about your judgment and ability to put the interests of the American people ahead of your own financial interests.”

Tether’s Due Diligence: A Comedy of Errors? 🤡

Warren’s letter is a veritable treasure trove of questions, demanding details on Lutnick’s personal and corporate investments in Tether, any chit-chats he’s had with Trump administration officials about the cryptocurrency, and whether Cantor Fitzgerald even bothered to do its homework on Tether’s compliance with financial regulations. Spoiler alert: probably not. 🕵️‍♂️

She also couldn’t resist mentioning reports that Lutnick used his position as Trump’s transition co-chair to give Cantor Fitzgerald’s business interests a little nudge, including its relationship with Tether. “Even after the election, and after you were tapped as President Trump’s chosen Commerce Secretary, Cantor Fitzgerald continued to deepen its ties to Tether, reportedly agreeing to serve as the backbone of a multi-billion-dollar Bitcoin lending program,” Warren wrote, her tone suggesting she’s not buying whatever Lutnick is selling. 💸

Lutnick’s nomination comes as Cantor Fitzgerald prepares to launch a $2 billion Bitcoin (BTC) lending initiative backed by Tether, a project that could expand to tens of billions. Because, why not? As regulatory scrutiny around Tether increases, Warren highlighted a 2024 comment from Tether’s CFO, Giancarlo Devasini, who reportedly claimed Lutnick would use his influence to “defuse threats facing Tether.” Oh, the irony. 😏

“You cannot serve as a booster for Tether while impartially fulfilling the Department of Commerce’s mission to ‘create the conditions for economic growth and opportunity for all communities,’” Warren stated, her words a masterclass in understatement.

Warren’s 13 Questions: The Inquisition Begins 🕵️‍♀️

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Other questions focus on Tether’s alleged criminal investigation and whether Lutnick will pledge not to interfere with ongoing probes by the Department of Justice and Treasury. Warren also questions whether Lutnick’s requested ethics waiver could allow him to influence decisions affecting Cantor Fitzgerald, despite maintaining corporate ties. Because, you know, ethics are overrated. 🙃

Lutnick’s Confirmation: The Final Act? 🎭

At the time of writing, Lutnick faces confirmation. If confirmed, Lutnick would oversee a department responsible for trade policy, economic development, and business regulation. His nomination underscores Trump’s increasing support for the crypto sector, which has included backing for digital asset initiatives and proposed White House crypto policy positions. “If you are confirmed as Commerce Secretary,” wrote Warren, “You will have extraordinary access to President Trump and other high-level officials responsible for regulating Tether, putting you in a position to influence policies that may directly or indirectly impact Tether and the entire cryptocurrency industry.”

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2025-01-29 18:15