Senate Democrat Questions Cantor Fitzgerald Over Tether Ties and Lutnick Family Profits

Senate probe targets Cantor Fitzgerald's Tether partnership

US investment bank Cantor Fitzgerald is under scrutiny from a Senate Democrat over its business relationship with Tether, the issuer of the USDT stablecoin. Senator Richard Blumenthal sent a letter on Thursday demanding records about the partnership and asking how much Commerce Secretary Howard Lutnick's family has earned from it. Blumenthal, the ranking Democrat on the Senate's Permanent Subcommittee on Investigations, raised concerns about national security and called for the US Treasury and Justice Department to investigate possible sanctions violations.

What the letter demands

• Cantor Fitzgerald holds a 5% stake in Tether and custodies tens of billions of the company's US Treasury bill reserves.
• The senator alleges Cantor's Tether stake grew in value from an estimated $600 million to $10 billion since Donald Trump returned to office.
• Howard Lutnick is said to have received more than $250 million during that period, including a $192 million distribution from Cantor Fitzgerald.
• Blumenthal is asking for all communications involving Howard Lutnick about Tether, including after he left the firm.
• The senator also wants details on Howard Lutnick's divestiture terms and any loans or financing Tether provided to help transfer ownership to his children.

Background on the Cantor-Tether relationship

Cantor Fitzgerald's ties to Tether date back to 2021, when it began acting as a custodian for a portion of the US Treasuries that back Tether's reserves. A stablecoin is a cryptocurrency designed to maintain a stable value, typically pegged to the US dollar. Howard Lutnick served as chairman and CEO of Cantor while the Tether investment was negotiated in April 2024. He stepped down from the firm after being confirmed as commerce secretary in February 2025. His son Brandon then became chairman, and another son became vice chairman.

Allegations about Iran's shadow banking network

The inquiry follows a report by Democratic investigators last month alleging that Tether's USDT has become a key tool for Iran's shadow banking network. Blumenthal wrote that Cantor's "lucrative business arrangements with Tether come at the expense of America's national security." Tether responded to the Iran allegations by saying it has been working with law enforcement for years and has frozen nearly $550 million in Iran-linked USDT this year.

What remains unclear

Cantor Fitzgerald has not publicly responded to the senator's letter. Cointelegraph reached out to both Cantor Fitzgerald and Tether for comment but did not receive an immediate response. It is unconfirmed whether the estimates of the stake's value increase or the Lutnick family's earnings are accurate. The senator's letter presents these figures as allegations.

Why this matters

The scrutiny highlights growing congressional concern over the ties between major financial firms and stablecoin issuers, especially when those firms have connections to current government officials. It also raises questions about whether banks handling stablecoin reserves are doing enough to monitor compliance with sanctions laws.

What happens next

Blumenthal has asked Cantor Fitzgerald to respond by October 23. The senator has also called on the Treasury and Justice Department to investigate potential sanction violations.

Sources

• Cointelegraph
• Senate letter from Senator Blumenthal

Read also: Senator Blumenthal Probes Tether's Financial Ties to Cantor Fitzgerald