According to CoinDesk, Howard Lutnick, chairman of Cantor Fitzgerald and U.S. President Donald Trump's nominee for U.S. Commerce Secretary, recently faced intense questioning from Senate Democrats regarding Cantor Fitzgerald's involvement with Tether, the issuer of the world's largest stablecoin, USDT. Lutnick appeared before the Senate Committee on Commerce, Science, and Transportation on January 29, following his testimony at the Senate Banking Committee.

Cantor Fitzgerald acts as Tether's primary custodian for U.S. Treasuries, managing a substantial portion of its reserves and holding convertible debt issued by Tether's parent company. The reserves backing USDT have long been a concern within the crypto industry. In 2023, Lutnick attempted to alleviate these concerns by associating Cantor's reputation with Tether, asserting that as its custodian, he was confident in Tether's financial backing. However, during the hearing, Lutnick appeared to temper his previous statements.

Lutnick stated, "Cantor Fitzgerald is not conducting continuous diligence on Tether’s financial statements, but I believe my statements were accurate when made," retracting his earlier assertion that "Tether has every penny, and it can produce liquidity on a moment’s notice." On Polymarket, bettors currently assign a 10% probability of Tether becoming insolvent in 2025 and a 14% chance of it de-pegging during the year, indicating potential issues at the issuer. A contract regarding insolvency for 2024 averaged around 4% in the last quarter of the year.

Lutnick also confirmed that "Cantor Fitzgerald made a convertible debt investment in the holding company that owns the Tether stablecoin business in April 2024," clarifying that this does not imply an ownership stake in the stablecoin issuer. "Cantor Fitzgerald’s debt investment in Tether does not constitute an equity

Critics of Tether often call for an audit of the company's financial records due to USDT's significant role in the broader crypto ecosystem. While Lutnick acknowledged of for U.S. dollar,

, Lutnick denied