Blumenthal Presses Cantor Fitzgerald on Its Business Ties to Tether

Sen. Richard Blumenthal, the top Democrat on the Senate Permanent Subcommittee on Investigations, sent a letter Thursday to Cantor Fitzgerald CEO Brandon Lutnick requesting information about the firm’s relationship with stablecoin issuer Tether. Neither company has responded publicly, and the letter makes no finding of wrongdoing.

Letter Seeks Details on Cantor’s Role

Blumenthal addressed the letter to Lutnick, the son of Commerce Secretary Howard Lutnick, who handed leadership of the firm to his son when he joined the Trump administration. The letter, published on the Senate Homeland Security and Governmental Affairs Committee’s website, asks Cantor to describe its banking and sanctions safeguards and the elder Lutnick’s history with Tether.

Cantor handles Tether’s reserves in the United States, according to reporting on the letter, and the two companies share other business interests. Blumenthal wrote that Tether says it operates out of El Salvador, while the vast majority of its assets sit in the U.S. under Cantor’s custodianship. He said that arrangement gives Cantor a view into how the industry works that could inform Congress as it considers how to regulate digital assets.

The senator tied Cantor’s income to Tether’s. In the letter, he wrote that Tether has made untold millions in interest and investments from stablecoins used in illicit activities, then drew the comparison to Cantor.

“So has Cantor Fitzgerald profited from its relationship with Tether.”

Those are the senator’s characterizations. Neither company has addressed them, and the letter does not cite a court finding or an agency determination that any stablecoin transaction was unlawful.

Questions on Iran and Russia Sanctions

Among the letter’s many requests, Blumenthal asked Cantor to describe all steps it has taken to investigate allegations that Tether’s stablecoin has been used in illicit finance and money laundering. The request names Iran’s shadow banking network and Russia sanctions evasion.

The inquiry follows a report Blumenthal and other Senate Democrats published on Sept. 28 alleging that Tether’s USDT has served as a financial lifeline for Iran’s sanctions evasion. That document was issued by minority members of the subcommittee and does not represent a finding of the full committee. Tether responded at the time that it had supported nearly $550 million in Iran-linked freezes at the request of U.S. authorities, a figure that comes from the company’s own statement.

Neither Company Has Responded

Cantor Fitzgerald and Tether did not immediately respond to requests for comment sent to their spokespeople. The letter is a request for information. It does not carry legal force on its own, and Cantor is not required to answer it, since Blumenthal’s party is in the minority.

That limit is central to the political context. Blumenthal and other critics of the crypto industry, including Sen. Elizabeth Warren, have had limited authority as members of the minority party. Their requests for information can draw public attention but cannot compel a response.

A Possible Shift in Authority After November

The inquiry arrives as Democrats’ odds of winning a Senate majority in the November election have improved, according to prediction markets. Kalshi puts the chance at 61% and Polymarket at 64%. Several weeks ago, those odds were closer to 50-50. Both platforms show a likelihood above 90% that Democrats win a majority in the House of Representatives.

If Democrats won control of the Senate, members such as Blumenthal could chair committees with the power to issue subpoenas to compel documents and testimony. That would change what a letter like Thursday’s can accomplish. Prediction market odds reflect traders’ bets and move frequently, and they are not a forecast of the outcome.