US dollar stablecoins should be audited

Howard Lunick, President Trump’s choice for the American secretary in trade, faced difficult questions from the legislators concerning his links with Tether and the alleged criminal use of his stablecoin in dollars.

Speak in a Senate audience To assess his appointment, CEO of Cantor Fitzgerald responded to a wave of investigations on the potential role of Tether in illegal finance.

USDT de Tether (USDT) Stablecoin and its reservations have been under control for years, political decision -makers raising concerns about the lack of business audits of the company. A main allegation suggests that without appropriate audits, the attachment could dispel up to $ 19 billion in illegal activities.

In 2023, republican legislators asked the Ministry of Justice if the binance and the attachment facilitate the financing of terrorism. In 2024, the Wall Street Journal reported that US investigators also probed the operator of Tether for potential sanctions violations and money laundering violations.

Tether and his CEO, Paolo Ardoino, categorically denied these allegations, saying that no investigation is in progress. The company publishes quarterly orders to reassure users, although many observers consider these insufficient reports.

The USDT transmitter paid 41 million dollars in civil sanctions as part of a 2021 regulation with the Commodity Futures Trading Commission. According to the CFTC, Tether distorted its assertion that the USDT was entirely supported by the reserves at any time.

During the hearing, the Senate Commerce Committee ranks Democrat Maria Cantwell pressed Lodnick on Stablecoin audits. He replied by declaring that “the stablescoins of the US dollar should be checked” and “completely supported by US treasury bills, 100%”.

Cantwell also referred to the allegations that Chinese, North Korean and Russian criminal groups used the USDT for illicit transactions. In response, Lutnick argued that the Fiat currency remains the main tool for bad players and that innovators should not be blamed for the abusive use of their technology.

“It’s like blaming Apple because criminals use Apple phones,” pushed Larnick.

President Trump chose Lunick for serve As the next American trade secretary, pending confirmation from the Senate. In this role, he would focus on creating jobs and would collaborate with Trump’s cryptography council to shape digital asset policies.

Due to conflicts of interest in this office, Lutnick agreed To leave Cantor Fitzgerald, who is a attachment goalkeeper.

“I will deactivate, I will sell all my interests, my commercial interests, all my assets, everything,” said Libnick at the hearing.