During a Senate confirmation hearing, billionaire Howard Lutnick, a prominent Bitcoin supporter and nominee for Commerce Secretary, addressed concerns regarding his firm's ties to Tether, the largest stablecoin. Lutnick emphasized his support for government audits of stablecoin reserves, advocating that U.S. dollar-backed stablecoins should undergo mandatory inspections to enhance transparency and instill confidence in their collateralization. The discussion comes amidst worries from lawmakers, including Sen. Elizabeth Warren, regarding Tether's connection to illicit finance and the potential consequences of a lack of regulation in the stablecoin market. Lutnick characterized the scrutiny of Tether as akin to blaming a phone manufacturer for crimes committed using their products, asserting that Tether's widespread usage is comparable to that of the U.S. dollar. He also expressed optimism that the government would leverage AI technology to eliminate criminal activities in the blockchain space. Although questions about Tether surfaced, they constituted a minor part of the lengthy hearing, with Lutnick confidently defending his stance throughout.

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