Blumenthal Demands Answers From Cantor Fitzgerald Over Tether Ties

Sen. Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, sent a letter Thursday to Cantor Fitzgerald CEO Brandon Lutnick demanding information about the financial firm's relationship with Tether, the dominant stablecoin issuer, according to CoinDesk. The letter asks about Cantor's banking and sanctions safeguards and about the Lutnick family's history with Tether. Neither Cantor Fitzgerald nor Tether immediately responded to requests for comment sent to their spokespeople.

Blumenthal has been examining Tether's role in Iran's financial system, and he pointed to what he described as a lucrative arrangement between the issuer of USDT and the New York-based firm that custodies its U.S. reserves. In the letter, he wrote that Tether has earned substantial interest and investment income from stablecoins used in illicit activities, and that Cantor Fitzgerald has likewise profited from its ties to the company. He also noted that while Tether says it operates out of El Salvador, most of its assets sit in the United States under Cantor's custodianship, according to CoinDesk.

Among the letter's requests, Blumenthal asked Cantor to detail every step it 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 evading Russia sanctions. He framed the inquiry as directly relevant to pending legislation, saying the partnership would offer important insight into the inner workings of the industry as Congress weighs how to regulate digital assets.

The letter lands in a politically charged context. Brandon Lutnick is the son of Commerce Secretary Howard Lutnick, who handed the company's reins to his son when he joined the Trump administration. Blumenthal and other aggressive congressional critics of the crypto industry, including Sen. Elizabeth Warren, have so far been constrained by their status in the minority party.

That could change after November. If Democrats pick up several more seats in the Senate, they could chair committees armed with subpoena power to compel documents and testimony. Prediction markets currently give Democrats a better-than-even chance of retaking the chamber, with Kalshi at 61% and Polymarket at 64%, up from roughly a coin flip several weeks ago. In the House, both platforms put the likelihood of a majority shift above 90%, according to CoinDesk.