Senate Democrat Demands Answers From Cantor Fitzgerald Over Tether Ties

TLDR

• Senator Richard Blumenthal sent a letter to Cantor Fitzgerald CEO Brandon Lutnick demanding details on its relationship with Tether
• Blumenthal wants to know how Cantor monitors Tether’s compliance with banking and sanctions laws
• The senator claims Cantor’s stake in Tether grew from $600 million to $10 billion since Trump returned to office
• Howard Lutnick reportedly received over $250 million during this period, including a $192 million payout from Cantor
• Blumenthal has set an October 23 deadline for Cantor Fitzgerald to respond

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Senator Richard Blumenthal is asking Cantor Fitzgerald for details about its financial relationship with Tether. He sent a letter to the company’s CEO, Brandon Lutnick, on Thursday.

Cantor Fitzgerald grilled by Senate Democrats over Tether ties, following a report alleging USDT aids Iran’s shadow banking network. If scrutiny deepens, regulatory pressure on stablecoins could intensify. $USDT pic.twitter.com/gzOOfqIfos

— Bpay News (@bpaynews) October 9, 2026

Blumenthal is the top Democrat on the Senate Permanent Subcommittee on Investigations. He wants to know how Cantor monitors Tether’s compliance with banking and sanctions rules.

Tether is the company behind the world’s largest stablecoin. Cantor Fitzgerald holds a share of Tether and also manages many of its reserve assets.

The relationship between the two companies started in 2021. Cantor began acting as a custodian for the US Treasury bonds that back Tether’s stablecoin.

Howard Lutnick led Cantor Fitzgerald as chairman and CEO during that time. He helped arrange Cantor’s investment in Tether back in April 2024.

Howard Lutnick later left Cantor Fitzgerald. He joined the Trump administration as Commerce Secretary in February 2025.

After he left, his son Brandon Lutnick became chairman of Cantor Fitzgerald. Another son was named vice chairman.

Blumenthal’s letter claims Cantor’s stake in Tether has grown a lot in value. He says it rose from about $600 million to $10 billion since President Trump returned to office.

The letter also claims Howard Lutnick received more than $250 million during this period. That includes a $192 million payout from Cantor Fitzgerald.

Blumenthal wrote that Cantor has profited from its ties to Tether. He said this happened while Tether’s stablecoin was allegedly used for illicit purposes.

Questions About Iran And Sanctions

The letter follows an earlier report from Senate investigators. That report claimed Tether’s stablecoin has been used inside Iran’s shadow banking network.

Blumenthal has asked the Treasury Department and the Justice Department to look into possible sanctions violations. He wants to know what Cantor has done to check these claims.

Tether has responded in the past about these allegations. The company said it works with law enforcement and has frozen nearly $550 million in Iran-linked tokens this year.

What Cantor Fitzgerald Must Answer

Blumenthal is asking for more than compliance records. He wants details on Howard Lutnick’s exit from Cantor Fitzgerald and any loans tied to that move.

The senator also asked if Cantor requires independent audits of Tether. He wants to know if the firm has ever considered ending the partnership.

Both Tether and Cantor Fitzgerald were contacted for comment. Neither company responded right away.

Blumenthal has set a deadline of October 23 for Cantor to respond. The outcome could depend on whether Democrats gain more power in Congress after the November election.

Prediction markets currently show Democrats have a good chance of winning back the Senate. Kalshi puts the odds at 61 percent, while Polymarket shows 64 percent.