Howard Lutnick, Donald Trump’s pick for Commerce Department Chief, advocated for stablecoin regulations in the United States. During his confirmation hearing today, Lutnick suggested that US stablecoins should undergo regular audits and be backed by US Treasuries.
Amid Trump’s stablecoin advancements, Howard Lutnick highlighted the significance of stablecoin regulation. The Trump pick’s suggestion underscores the necessity of a secure and reliable financial ecosystem.
Stablecoins Should Be Audited: Howard Lutnick
In his confirmation hearing, Howard Lutnick, the CEO of Cantor Fitzgerald and Trump’s nominee for Commerce Secretary, advocated for stablecoin regulation. Specifically, he suggested that US dollar-backed assets should be audited and backed by US Treasuries, emphasizing the need for greater oversight.
Further, Lutnick pushed back against allegations that stablecoin issuers facilitate illicit activities, asserting that malicious actors are misusing these assets for their own purposes. He added, “It’s like blaming Apple because criminals use Apple phones.”
Moreover, Lutnick championed the growth of artificial intelligence in the US. He believes that AI could tackle the growing illicit activities that utilize blockchain.
Cantor Fitzgerald CEO Defends Tether
While Howard Lutnick’s connections with the stablecoin issuer Tether has recently raised concerns, he supported the platform. He stated, “Tether did no business with anyone that wasn’t KYC-appropriate.” He added that he has mandated Tether to comply with US regulations. In addition, drawing a parallel with traditional finance, Howard Lutnick stated, “We don’t pick on the US Treasury when criminals use the US dollar.”
Recently, Senator Elizabeth Warren expressed concerns regarding Lutnick’s deep involvement with Tether. In a letter written on January 21, she wrote,
While you have agreed to divest your interest in Cantor Fitzgerald, which holds a 5% stake in Tether, and serves as Tether’s asset manager, this divestment does not end the questions about your deep personal ties to the company or its affiliates.
Donald Trump Promotes Stablecoin Development
In a recent development, Donald Trump signed an executive order to promote the growth of cryptocurrencies, including stablecoins. In his crypto-focused proposal, Trump highlighted his intention to “promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide.”
Trump also projected his skeptic approach to central bank digital currencies (CBDCs). He strictly banned agencies from issuing and establishing CBDCs.
Donald Trump’s crypto promotion and Howard Lutnick’s stablecoin regulation agenda are poised to strengthen the US crypto market. The community remains anxious about Trump’s further actions that could significantly impact the global crypto industry.
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