Senate's Top Democrat Knocks on Cantor's Door Over Its Tether Tango 💼

U.S. Senator Richard Blumenthal, the top Democrat on the Senate Permanent Subcommittee on Investigations, sent a letter Thursday to Cantor Fitzgerald Chairman Brandon Lutnick demanding records on the Wall Street firm's partnership with Tether, issuer of the world's largest stablecoin, USDT ($USDT), and on the profits earned by Commerce Secretary Howard Lutnick's family from the arrangement. "Disturbingly, Cantor Fitzgerald's lucrative business arrangements with Tether come at the expense of America's national security," Blumenthal wrote, framing the minority probe as an investigation into "the illicit use of cryptocurrencies and the Trump Administration's self-enrichment and self-dealings with cryptocurrency firms." The letter is a request for information with an Oct. 23 deadline rather than a subpoena, does not accuse Cantor of breaking a specific law, and contains no finding of wrongdoing.

Blumenthal's letter outlines a series of allegations drawn from press reports and the committee's prior work. It states that Lutnick has made more than $250 million since President Donald Trump returned to office, including a $192 million distribution from Cantor Fitzgerald, and that Cantor's 5% stake in Tether, acquired in 2024, climbed in estimated value from $600 million to $10 billion over the same period, on top of tens of millions of dollars a year the firm collects from safeguarding Tether's reserves. "Just as Tether has made untold millions in interest and investments from the stablecoins used in these illicit activities, so has Cantor Fitzgerald profited from its relationship with Tether," Blumenthal wrote. He added that "while Tether claims to operate out of El Salvador, the vast majority of its assets reside in the United States under your custodianship."

Cantor Fitzgerald began acting as custodian for a portion of the U.S. Treasuries backing Tether's reserves in 2021 and helped negotiate its investment in Tether in April 2024 under Howard Lutnick's leadership. Lutnick stepped down after the Senate confirmed him as Commerce Secretary in February 2025, and the firm subsequently named his son Brandon chairman and his other son vice chairman. Blumenthal is seeking the terms of Howard Lutnick's divestiture from Cantor, along with any loan or financing Tether provided to Lutnick or his family to facilitate the transfer of ownership, and all communications involving Howard Lutnick about Tether, including those after his departure.

The letter follows a September report by Democratic investigators on the subcommittee alleging that Tether's USDT has become a key tool for Iran's shadow banking network, with Blumenthal noting that of 846 cryptocurrency wallets sanctioned or targeted for seizure over links to Iran and its regional proxies, 84% transact in USDT. Tether has said it has worked with law enforcement for years and has frozen nearly $550 million in Iran-linked USDT this year. Among Blumenthal's specific requests: "Please describe all steps Cantor Fitzgerald has taken to investigate allegations that Tether's stablecoin has been used in illicit finance and money laundering, including within Iran's shadow banking network and for purposes of Russia sanctions evasion." Neither Cantor Fitzgerald nor Tether immediately responded to requests for comment.