US Senator Elizabeth Warren is raising the alarm over President Donald Trump’s Commerce Secretary nominee, Howard Lutnick, citing his firm’s ties to Tether.

In a letter dated Jan. 27, Warren expressed “serious concern” over Lutnick’s deep involvement with Tether. His firm, Cantor Fitzgerald, holds a 5% stake in Tether and serves as its asset manager. While Lutnick has agreed to divest from Cantor Fitzgerald, Warren argues that his influence over the crypto industry remains a major red flag.

If confirmed on Jan. 29, Lutnick would gain direct access to Trump and key officials overseeing cryptocurrency regulations. Warren warns this could allow him to shape policies favoring Tether, potentially undermining financial oversight. She is demanding answers from Lutnick on his personal financial stake in Tether and any discussions he has had with Trump officials regarding the stablecoin. She also questions whether Cantor Fitzgerald ensured Tether’s compliance with US laws, including Anti-Money Laundering and Know Your Customer regulations.

Despite Warren’s strong opposition, she does not sit on the committee that will oversee Lutnick’s confirmation, limiting her ability to block his nomination.

Tether, often accused of enabling illicit activities, has also worked with authorities to crack down on financial crimes. It recently helped Spanish law enforcement freeze $26.4 million tied to a European money-laundering scheme and assisted the FBI in seizing funds from crypto scammers.

Warren remains one of Washington’s most vocal crypto critics. She has repeatedly pushed for tighter regulations and introduced legislation to bring digital assets under strict financial oversight. However, her efforts have faced resistance from crypto advocates, who argue excessive regulations could drive the industry offshore.