Senator Blumenthal Raises Concerns Over Cantor Fitzgerald and Tether
Senator Richard Blumenthal, a leading Democrat on the Senate’s Permanent Subcommittee on Investigations, has raised concerns regarding the ties between Cantor Fitzgerald and Tether, the issuer of the USDT stablecoin. This inquiry comes in light of a recent report suggesting that Tether has become instrumental in facilitating Iran’s shadow banking operations.
Request for Information
In a letter sent on Thursday, Blumenthal requested detailed information from Cantor Fitzgerald’s chairman, Brandon Lutnick, pertaining to the company’s oversight of Tether’s adherence to banking regulations and sanctions law. He specifically inquired about any correspondence involving Howard Lutnick, who previously led Cantor and now serves as Commerce Secretary, particularly after his departure from the firm.
National Security Concerns
The senator expressed significant alarm over the potential risks posed to national security by Cantor Fitzgerald’s financial arrangements with Tether, which include holding a 5% stake acquired in 2024 and managing substantial reserves in Tether’s US Treasury bills. Blumenthal asserted that the value of this stake has skyrocketed from approximately $600 million to an estimated $10 billion since Donald Trump returned to office, with Howard Lutnick reportedly receiving over $250 million during this timeframe, including a distribution of $192 million from Cantor Fitzgerald.
Calls for Investigation
The senator has pressed both the US Treasury and the Justice Department to investigate whether any sanctions have been violated in this complex financial relationship. Tether, for its part, defended its operations, stating that it has actively collaborated with law enforcement and has frozen nearly $550 million in USDT that has ties to Iran this year. Blumenthal characterized the mutual benefit of Cantor Fitzgerald’s profitability from Tether as deeply troubling given the circumstances.
Background on Cantor Fitzgerald’s Involvement
Cantor Fitzgerald’s association with Tether began in 2021 when the firm began acting as a custodian for the US Treasuries that back Tether’s reserves. Howard Lutnick was instrumental in securing this investment before stepping down as chairman in February 2025 after being confirmed in his new role as commerce secretary. In the interim, his sons have taken over leadership positions at the firm.
Further Demands for Transparency
Furthermore, Senator Blumenthal is demanding information on Howard Lutnick’s divestiture from Cantor Fitzgerald, including any financing from Tether to assist in transferring ownership to his children, and whether independent audits of Tether are conducted. He has also queried about the potential for terminating this partnership and what measures have been taken to investigate allegations of illicit financial transactions. The deadline for Cantor’s response is set for October 23.
