Trump administration collaborating with Tether? The Wall Street Journal: Cantor Fitzgerald in talks to acquire 5% stake in Tether

Well-known Financial Service company Cantor Fitzgerald is taking a big step into the Cryptocurrency field by acquiring a stake in Tether, a stablecoin issuer. Led by Cantor Fitzgerald CEO Howard Lutnick, who is also the next nominated Secretary of Commerce under Trump, this move has sparked discussions about the future of Cryptocurrency regulation in the United States and reflects the political-business relationships in the Cryptocurrency market.

(New Commerce Minister Howard Lutnick: Endorsed Tether, Optimistic about Stablecoin and RWA Development)

Cantor Fitzgerald acquires 5% stake in Tether for $600 million

According to The Wall Street Journal, Cantor Fitzgerald has acquired a 5% stake in Tether for about $600 million, bringing Tether's total valuation to approximately $12 billion. This further strengthens the close partnership between Cantor and the stablecoin (pegged to the US dollar) issuer.

The report pointed out that Cantor earns tens of thousands of dollars in fee income each year by managing a reserve of 133 billion US dollars in Tether, demonstrating the Depth cooperation between the two parties in finance and operations.

USDT reserve fund Howard Lutnick spans business and political power, helping to mitigate the offshore risks of USDT

Cantor CEO and major shareholder Howard Lutnick has recently gained a lot of attention due to his nomination as the Secretary of Commerce under President-elect Trump. Lutnick's potential appointment as Secretary of Commerce is seen as a signal of support for Crypto Assets, which is consistent with his company's expansion plans in the Crypto Assets business.

The Wall Street Journal reported that Tether executives, including co-owner Giancarlo Devasini, see Lutnick as an important ally in addressing regulatory challenges. It is said that Devasini is confident in Lutnick's use of his political connections to drop Tether and its offshore business regulatory risks.

The regulatory controversy surrounding Tether continues to simmer

Despite Tether's continued profitability, it is closely followed by regulatory agencies and law enforcement agencies for suspected involvement in illegal activities (including terrorism and hacking). Last month, the US Treasury Department considered imposing sanctions on Tether because USDT was used in transactions involving entities sanctioned by the United States.

(The Wall Street Journal: US federal authorities are investigating Tether)

In response, Tether CEO Paolo Ardoino refuted these allegations as 'rehashed noise' and denied any ongoing investigations against the company. He also emphasized that Tether has made a profit of $7.7 billion in the first nine months of this year thanks to strong returns from US Treasuries.

(Tether Third Quarter Report: Profits of $7.7 billion in the first three quarters, with significant contributions from gold appreciation)

Will political turmoil turn the fate of Tether?

The partnership between Cantor Fitzgerald and Tether has sparked heated discussions on the impact on business and political interactions. Although Lutnick has announced plans to sell his equity in Cantor and related companies to comply with government ethics regulations, critics believe that he may still indirectly influence the regulatory environment of Tether after serving as Secretary of Commerce.

Tether spokesperson, on the other hand, refuted these allegations, emphasizing that its relationship with Cantor is "completely professional" and has nothing to do with politics.

The future prospects of US encryption policy

Lutnick's nomination and Cantor's increasing involvement in Tether may indicate a potential shift in US encryption policy. If Lutnick is successfully appointed, his role may contribute to promoting wider adoption of Crypto Assets and relaxing regulations.

Did the Trump administration collaborate with Tether? The Wall Street Journal: Cantor Fitzgerald negotiates a 5% stake in Tether. This article first appeared on Chain News ABMedia.