Howard Lutnick, nominated by US President Donald Trump for US Secretary of Commerce, has expressed strong support for strict controls on stablecoins, stating that US dollar-backed stablecoins should be fully backed by US Treasuries.
Lutnick stated in a recent Senate hearing that it is important for stablecoins to be audited to ensure they are backed 1:1 by US Treasury bonds.
“I believe that US dollar stablecoins should be regulated and 100% backed by US Treasuries,” Lutnick said. He also noted that issuers should honor their commitments to depositors and ensure that withdrawal values do not change.
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When asked whether his global financial services firm, Cantor Fitzgerald, has any stake in Tether, Lutnick said, “No.” He did, however, disclose that Cantor Fitzgerald does have a convertible note with Tether, though he did not disclose further details about its terms or structure.
Tether has faced scrutiny, including from regulators, over its reserves, with some questioning the one-to-one dollar backing for USDT ($1.00). Tether has consistently denied these claims. Tether has published verification reports over the years, but has faced criticism over its legitimacy when compared to audits.
*This is not investment advice.
Continue Reading: Howard Lutnick, Donald Trump’s Nominee for Secretary of Commerce and CEO of Cantor Fitzgerald, Speaks on Tether (USDT) in the Senate
