Howard Lutnick, chairman of Cantor Fitzgerald, appeared before the Senate Committee on Commerce, Science, and Transportation, addressing concerns over his firm's connections with Tether, issuer of the USDT stablecoin. During the hearing, Lutnick moderated his previous assertions about Tether's reserves, acknowledging that Cantor Fitzgerald is not continuously reviewing Tether's financial statements. He admitted the firm holds convertible debt in Tether's parent company but emphasized that it does not equate to an ownership stake. Criticism regarding Tether's financial transparency remains prevalent, with calls for an independent audit of its books. While Lutnick agreed that such audits are necessary for U.S. dollar stablecoin issuers, he refrained from making specific demands regarding Tether. He also defended against allegations of improper influence on crypto regulation, stressing the need for cautious legislation to protect U.S. dollar hegemony in the blockchain space. Furthermore, he downplayed predictions of Tether's insolvency, asserting confidence in the stablecoin's backing.

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