Trump’s Commerce Pick Wants Tether Audited – Will This Shake Up Crypto?

Howard Lutnick, nominated by Donald Trump for the role of commerce secretary, has voiced support for U.S.-based audits of stablecoins like Tether, arguing that transparency in reserves is essential for regulatory clarity.

During a confirmation hearing, Senator Maria Cantwell (D-WA) questioned Lutnick about how stablecoins should be regulated to ensure proper backing. In response, he suggested that audits and holding U.S. Treasuries as collateral would provide the necessary financial security for these digital assets.

Lutnick’s comments carry weight given his firm, Cantor Fitzgerald, has financial ties to Tether, managing a portion of its reserves and holding convertible bonds from the company. While Tether has claimed since 2014 that an independent audit is coming, it has yet to deliver on that promise.

Over the years, Tether has repeatedly misrepresented the nature of its reserves, raising concerns about its financial stability. At one point, its former general counsel assured the public that an audit covering 2018 would be released—a year when the company faced allegations of engaging in questionable transactions and misleading investors about its asset backing.

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Despite these controversies, Lutnick has publicly defended Tether’s financial standing, maintaining that the stablecoin issuer has the reserves it claims.

Lutnick also emphasized the role of artificial intelligence in monitoring and preventing crypto-related illicit activities, including fraud, human trafficking, and sanction violations linked to USDT transactions.

However, experts are skeptical, noting that while AI and blockchain analytics enhance financial tracking, they are far from being a silver bullet in stopping large-scale digital asset crimes.

Alexander Zdravkov