Howard Lutnick, CEO of Cantor Fitzgerald and Trump’s nominee for US Commerce Secretary During his Senate confirmation hearing, said AI will beat Crime on blockchains. Lutnick has refused the idea that the stablecoin issuer gives power to crimes, he further highlighted that “The bad actors will always find ways to misuse financial products.”
He told the Senate Commerce Committee, “It’s like blaming Apple because criminals use Apple phones. It’s just a product.” Notably, Lutnick’s firm holds a convertible bond in Tether.
As per the reports, Lutnick has faced crypto questions at the hearing as he has ties with the industry. Sen. Maria Cantwell has asked Lutnick on what are his plans to do about criminals using Tether. On this question, he responded, “Tether did no business with anyone that wasn’t KYC-appropriate.”
Further when he was asked that why regulators weren’t taking a strong stand on stablecoins. He responded, “We don’t pick on the US Treasury when criminals use the US dollar.” By comparing the situation to traditional finance.
He further said that “The two favourite financial instruments of the underworld are dollars and euros, but because they are physical instruments, we can’t track them. The only reason we have clarity about crime on the blockchain is because such public databases create an open and readable record that law enforcement and surveillance firms can analyze.”
Lutnick added that he has asked Tether to comply with all US law enforcement agencies. While defending Tether, Lutnick noted the need for greater oversight. He said, “I believe US dollar stablecoins should be audited.”
However, in the end, he added that AI will eventually “rid the world of criminals” using blockchain for illicit activity.
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