Senate Democrat Demands Records on Cantor Fitzgerald's Tether Ties
U.S. investment bank Cantor Fitzgerald is now the subject of a formal inquiry by a senior Senate Democrat, who has requested detailed records concerning the firm's business relationship with stablecoin issuer Tether. In a letter sent on Thursday, Senator Richard Blumenthal — the ranking Democrat on the Senate Permanent Subcommittee on Investigations — directed Cantor's chairman, Brandon Lutnick, to provide an accounting of the partnership and to disclose how much Commerce Secretary Howard Lutnick's family has earned through the arrangement.
Blumenthal specifically asked Cantor to explain the mechanisms it uses to oversee Tether's adherence to banking regulations and sanctions law. He also requested every communication involving Howard Lutnick and Tether, extending the request to messages exchanged after the former CEO departed the firm. In a pointed remark, the senator wrote that the profitable commercial deal between Cantor and Tether comes, in his view, at the direct expense of American national security.
Alleged Financial Gains and Compliance Concerns
The inquiry centers on a relationship that has generated substantial returns for both parties. Cantor Fitzgerald secured the rights to a five percent equity stake in Tether in 2024 and is understood to be holding tens of billions of dollars worth of the stablecoin issuer's U.S. Treasury bill reserves in custody. Blumenthal contends that the estimated value of Cantor's Tether stake has surged from roughly $600 million to approximately $10 billion since President Trump returned to the White House. Within that same window, the senator alleges Howard Lutnick personally received more than $250 million, a figure that includes a $192 million distribution paid out by Cantor Fitzgerald.
The letter also asks Blumenthal to press the U.S. Treasury Department and the Department of Justice to examine whether any sanctions violations have occurred through the Tether channel. He further questioned whether Cantor mandates independent audits of Tether's operations, whether the firm has ever considered walking away from the partnership, and what specific steps it has taken to probe allegations of illicit financial activity and sanctions evasion tied to the stablecoin.
Iran Shadow Banking Link and Tether's Response
The senator's letter comes in the wake of a report published last month by the Democratic members of the Senate Permanent Subcommittee on Investigations. That report alleged that Tether's U.S. dollar-pegged token, USDT, has become a central instrument in Iran's shadow banking infrastructure. Blumenthal drew a direct parallel in his correspondence, noting that just as Tether has accumulated enormous interest and investment income from stablecoins used in illicit channels, Cantor Fitzgerald has likewise reaped significant profits from its commercial relationship with the issuer.
Tether, for its part, issued a statement asserting that it has cooperated with law enforcement agencies for years. The company said it has frozen nearly $550 million in Iran-linked USDT tokens during the current calendar year. Cointelegraph contacted both Cantor Fitzgerald and Tether for comment but did not receive an immediate response at the time of publication.
Family Transition and Divestiture Questions
The Cantor-Tether partnership traces back to 2021, when the firm began serving as custodian for a portion of the U.S. Treasury securities that back Tether's reserves. Howard Lutnick, who at the time held both the chairman and CEO roles at Cantor, was instrumental in negotiating the firm's equity investment in Tether, which was finalized in April 2024.
Lutnick left Cantor after the Senate confirmed his appointment as Secretary of Commerce in February 2025. In the leadership shuffle that followed, his son Brandon was installed as chairman of the board, while his other son was named vice chairman. Blumenthal's letter probes the mechanics of that ownership transition, requesting the specific terms under which Howard Lutnick divested his stake in Cantor. The senator also asked whether Tether extended any loans or financing to Lutnick or members of his family to help facilitate the transfer of ownership to the next generation.
The broad scope of Blumenthal's request — spanning compliance records, internal communications, audit practices, divestiture terms, and family financing — signals that the Senate investigation could expand well beyond a simple review of one corporate partnership, potentially touching on questions of conflict of interest, regulatory oversight of stablecoin issuers, and the intersection of political office with private-sector financial dealings.
