Sen. Elizabeth Warren (D-Mass.) is reminding the crypto industry that they still have to shake off the negative connotation some Washington policymakers have when it comes to digital asset firms.
Warren sent a letter to Trump Commerce secretary nominee Howard Lutnick on Monday, pressing him on any connections he and his firm Cantor Fitzgerald LLP have with a crypto firm that she alleged had been exploited by criminals.
In the letter shared with The Hill, she said she has “serious concern” about Lutnick’s involvement and alleged support for Tether, a stablecoin giant she said had reported ties to global criminal networks.
Lutnick did not list Tether or any other crypto investments on his financial disclosure form, though Cantor Fitzgerald holds a stake in Tether, Bloomberg reported.
Lutnick has agreed to divest his holdings in Cantor Fitzgerald if he is confirmed by the Senate.
Why it matters: The crypto industry has worked over the past year to be seen as a legitimate venture after multiple scandals roiled its reputation in Washington.
And while the Trump administration appears to be ushering in a new era for the cryptocurrency industry, the federal probe into Tether puts a wrinkle in their mission
Tether has aggressively pushed back on the allegations.
