Cantor Fitzgerald is facing questions from a senior Senate Democrat about its business relationship with Tether, the issuer of the USDT stablecoin, including the firm’s compliance controls and the financial benefits received by Commerce Secretary Howard Lutnick’s family.
Senator Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, sent a letter on Thursday to Cantor chairman Brandon Lutnick. He asked the firm to provide records on its partnership with Tether, its monitoring of banking and sanctions requirements, and communications involving Howard Lutnick both during and after his time at Cantor.
The inquiry follows allegations from Democratic investigators that USDT has become an important instrument in Iran’s shadow banking network. Blumenthal has urged the US Treasury and Justice Department to examine whether sanctions may have been breached. The senator’s letter adds pressure to a relationship that has generated substantial commercial value for Cantor while placing questions about oversight and potential illicit finance at the center of the dispute.
What the Senate is asking Cantor
Blumenthal said Cantor’s arrangements with Tether could raise national-security concerns. His requests cover several areas:
- How Cantor monitors Tether’s compliance with banking and sanctions laws.
- Whether Cantor requires independent audits of Tether.
- Whether the firm has considered ending its partnership with the stablecoin issuer.
- What steps Cantor has taken to examine allegations involving illicit finance and sanctions evasion.
- The terms of Howard Lutnick’s departure and divestiture from Cantor.
- Whether Tether provided loans or other financing to Howard Lutnick or members of his family to help transfer ownership to his children.
Blumenthal also requested all communications involving Howard Lutnick and Tether, including communications from after he left Cantor. He asked Cantor to respond by October 23.
The senator’s inquiry follows a report issued last month by Democratic investigators on the Senate subcommittee. That report alleged that Tether’s USDT had become a key tool for Iran’s shadow banking network. Tether has rejected the implication that it is inactive on enforcement matters, saying it has worked with law enforcement for years and frozen nearly $550 million in Iran-linked USDT this year.
Cantor and Tether’s financial connection
Cantor Fitzgerald’s relationship with Tether began in 2021, when the investment bank started acting as custodian for part of the US Treasury securities backing Tether’s reserves. Tether issues USDT, a stablecoin designed to track the US dollar. Its reserves are intended to support the value of tokens in circulation, while a custodian holds assets on behalf of the issuer.
In 2024, Cantor acquired rights to a 5% stake in Tether. The firm is also reported to custody tens of billions of dollars in Tether’s US Treasury bill reserves. These arrangements give Cantor both an operational role connected to Tether’s reserve assets and an ownership interest in the stablecoin issuer.
Blumenthal alleged that Cantor’s stake in Tether rose in estimated value from $600 million to $10 billion after Donald Trump returned to office. He also alleged that Howard Lutnick received more than $250 million during that period, including a $192 million distribution from Cantor Fitzgerald.
The senator wrote that both Tether and Cantor have benefited financially from stablecoins that were allegedly used in illicit activity. The letter, however, represents a request for records and investigation rather than a finding that Cantor violated sanctions or banking laws.
Howard Lutnick led Cantor as chairman and chief executive during the period when the relationship developed. He helped negotiate Cantor’s investment in Tether in April 2024. After the Senate confirmed him as commerce secretary in February 2025, he stepped down from Cantor. The firm subsequently appointed his son Brandon as chairman and another son as vice chairman.
Tether response and current market picture
Tether said it has cooperated with law enforcement for years and has frozen nearly $550 million in USDT linked to Iran during 2026, according to the source material. Cantor Fitzgerald and Tether did not immediately respond to Cointelegraph’s requests for comment. The original reporting was published by Cointelegraph.
Moneyiar market data at 11:08-11:09 on October 9, 2026, showed USDT at $0.9991347062, down 0.02% over 24 hours and 0.05% over seven days. The broader crypto market data supplied by Moneyiar showed Ethereum at $2,491.5378837055, down 1.82% over 24 hours and 9.36% over seven days.
Other listed assets were also lower. Ethena was priced at $0.2146517236, down 1.74% over 24 hours and 13.47% over seven days. Monad stood at $0.0244295781, down 3.97% over 24 hours and 27.92% over seven days.
The Senate request now places the focus on Cantor’s internal controls, its financial arrangements with the Lutnick family and the degree of scrutiny applied to Tether’s reserve and compliance practices. Cantor’s response is expected by October 23.
