Cantor Fitzgerald Faces Senate Scrutiny Over Tether Ties

Senator Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, has asked Cantor Fitzgerald for records about its partnership with stablecoin issuer Tether.

In a letter sent Thursday to Cantor Chairman Brandon Lutnick, Blumenthal requested details on how the investment bank monitors Tether’s compliance with banking and sanctions laws. He also sought communications involving Howard Lutnick, including messages sent after the former Cantor chairman left the firm to become commerce secretary.

Blumenthal requested information about financial benefits received by Howard Lutnick and his family. The letter cites estimates that Cantor’s rights to a 5% stake in Tether rose in value from about $600 million to $10 billion after Donald Trump returned to the White House. It also alleges that Howard Lutnick received more than $250 million during that period, including a $192 million distribution from Cantor.

“Disturbingly, Cantor Fitzgerald’s lucrative business arrangements with Tether come at the expense of America’s national security,” Blumenthal wrote.

The senator asked Cantor to provide the terms of Howard Lutnick’s departure and disclose whether Tether provided loans or other financing to him or his family to help transfer ownership of Cantor to his children.

The inquiry follows a report from Democratic investigators on the Senate subcommittee that alleged Tether’s USDT stablecoin has become an important tool for Iran’s shadow banking network. Blumenthal called on the Treasury and Justice departments to investigate potential violations of US sanctions.

Tether has worked with law enforcement agencies for years and has frozen nearly $550 million in USDT linked to Iran this year, according to a company statement. Blumenthal wrote that Tether earned interest and investment income from stablecoins used in illicit activity and that Cantor benefited from its relationship with the issuer.

Cantor began acting as a custodian for some of the US Treasury securities backing Tether’s reserves in 2021. In April 2024, it acquired rights to a 5% stake in Tether. Howard Lutnick was Cantor’s chairman and chief executive at the time and helped negotiate the investment.

Howard Lutnick stepped down from Cantor after the Senate confirmed him as commerce secretary in February 2025. His son Brandon became chairman, while another son became vice chairman.

Blumenthal also asked whether Cantor requires independent audits of Tether, has considered ending the partnership or has investigated allegations of illicit finance and sanctions evasion. He requested a response by Oct. 23.