Lutnick’s Firm Invests in Tether Amid El Salvador Ties

Washington, D.C. — Howard Lutnick, the U.S. Commerce Secretary, has significant business connections to the controversial cryptocurrency firm Tether, which operates in El Salvador. Cantor Fitzgerald, the firm Lutnick previously led, holds a 5% stake in Tether and manages a majority of its assets, according to public records. This relationship comes as concerns rise over Tether’s regulatory history and its ties to Salvadoran President Nayib Bukele, who has faced criticism for authoritarian policies.

Tether, which issues the widely used stablecoin USDT, relocated to El Salvador where it benefits from the country’s favorable tax regime for cryptocurrency firms. Lutnick’s connections to Tether have raised alarms about potential conflicts of interest given his role in overseeing the U.S. economy.

In recent reports, Lutnick’s firm has also invested $775 million in Rumble, a video platform associated with Donald Trump’s supporters. Rumble later announced a deal to provide cloud services to Bukele’s government. As Lutnick’s firm steers funds into regions with ambiguous business practices, critics point to the ethical ramifications of these financial entanglements.

The growing relationship between Tether executives and the Bukele administration reflects a broader narrative of U.S. financial interest intersecting with foreign policy. Ricardo Valencia, a former Salvadoran diplomat, remarked that this relationship appears focused on exploiting El Salvador’s governance for profit.

As Tether’s founder, Giancarlo Devasini, has been involved in questionable business practices, the scrutiny of Lutnick’s association with Tether intensifies. This dynamic could impact regulatory approaches to cryptocurrency in the U.S., as concerns over compliance and accountability surface. Lutnick previously stated that he would leverage his political influence to mitigate regulatory pressures on Tether, positioning himself as a potentially pivotal figure in future cryptocurrency regulations.

As the links between Lutnick, Tether, and the Salvadoran government deepen, stakeholders are watching closely to see how these dynamics might reshape the landscape of cryptocurrency regulation in the U.S. and beyond.