Cantor Fitzgerald is facing questions from US Senator Richard Blumenthal over its financial relationship with stablecoin issuer Tether, including a reported 5% ownership stake now estimated to be worth around $10 billion.
Blumenthal sent a letter to Cantor chairman Brandon Lutnick on October 8, asking the firm to provide financial records, details of its services to Tether and information about its efforts to monitor possible sanctions violations. He gave the company until October 23, 2026, to respond.
The inquiry also examines payments reportedly received by Commerce Secretary Howard Lutnick, who previously led Cantor Fitzgerald. Blumenthal wants to understand how Lutnick’s financial interests were transferred to his family after he joined the Trump administration.
The senator’s request follows an investigation by Democratic staff on the Senate Permanent Subcommittee on Investigations into the use of Tether’s USDT stablecoin in financial networks linked to Iran.
The letter raises questions about Cantor’s oversight of Tether, but it does not establish that either company violated US law.
Cantor’s reported $10 billion stake in Tether
Cantor Fitzgerald began working with Tether in 2021, when the investment bank started holding US Treasury securities backing the USDT stablecoin.
The relationship later expanded to include an ownership interest. According to the reporting cited by Blumenthal, Cantor acquired rights to a 5% stake in Tether in 2024, while Howard Lutnick was still leading the firm.
Blumenthal estimates that the stake’s value has increased from around $600 million to approximately $10 billion since Donald Trump returned to the White House. This is the senator’s estimate based on external reporting, not a publicly confirmed valuation of Cantor’s interest.
The senator also claims Cantor earns tens of millions of dollars each year from assets it holds for Tether. He has requested records showing the firm’s annual revenue from the relationship and the payments received by members of the Lutnick family.
Blumenthal said the arrangement raises concerns about the connection between Cantor’s financial interests and national security. That is his stated position, not a finding by a court or regulatory agency.
He wants the firm to provide details of its custody services, investment positions, financial audits and other arrangements with Tether.
Questions about Howard Lutnick’s financial interests
Howard Lutnick’s former leadership role at Cantor Fitzgerald is another focus of the inquiry.
After the Senate confirmed him as commerce secretary in February 2025, he left his leadership positions at the firm. His son Brandon became chairman, while his son Kyle took on the role of vice chairman.
Blumenthal claims Lutnick received more than $250 million following Trump’s return to office, including a reported $192 million distribution from Cantor Fitzgerald. These figures relate to Lutnick’s reported income and should not be interpreted as money earned entirely through Tether.
The senator wants Cantor to explain how Lutnick transferred his ownership interests to his children and whether any Tether-related loans or financing were involved.
He has also requested communications concerning Tether’s fundraising, regulatory compliance, lobbying activities and contacts with federal officials.
The inquiry follows earlier questions about Lutnick’s business ties to Tether during his confirmation process. In January 2025, Senator Elizabeth Warren raised concerns about whether his financial interests could create conflicts while serving in the administration.
Investigation examines USDT transactions linked to Iran
The congressional inquiry also focuses on the use of USDT by wallets allegedly connected to Iranian financial networks.
A September 28 report by Democratic investigators on the Senate Permanent Subcommittee on Investigations examined 846 cryptocurrency wallets that had been sanctioned or otherwise targeted over suspected links to Iran and related organizations.
The investigators reported that 84% of the wallets had conducted transactions exclusively or almost exclusively using Tether’s USDT.
Blumenthal has questioned whether Tether adequately froze certain wallets despite publicly available information allegedly linking them to illicit financing. He has also called on the US Treasury and Justice departments to investigate possible violations of banking and sanctions laws.
His latest letter extends those questions to Cantor Fitzgerald. He is seeking information about the firm’s anti-money laundering procedures, sanctions screening and due diligence on Tether.
He also wants to know whether Cantor requires independent audits of Tether’s assets and whether it has considered ending its business relationship with the stablecoin issuer.
Tether has defended its cooperation with law enforcement.
In a September 28 statement, the company said it had helped freeze approximately $550 million in USDT linked to Iran during 2026. It cited more than $344 million frozen across two addresses in April and over $130 million across four wallets in July.
According to Tether, those actions involved addresses identified by US authorities as connected to Iran’s central bank and sanctions-related networks.
Tether CEO Paolo Ardoino has said the company does not provide a safe haven for sanctioned individuals or criminal organizations. The company also reported assisting more than 2,900 investigations worldwide.
These statements reflect Tether’s account of its cooperation with authorities. The broader questions raised by Blumenthal remain under congressional review.
Cantor must respond by October 23
Blumenthal has asked Cantor Fitzgerald to preserve relevant records and submit its response by October 23, 2026.
The request generally covers documents and communications dating from January 1, 2023, to the present, along with historical information about when the relationship with Tether began.
The senator is seeking records on sanctions monitoring, allegations involving Iran and Russia, financial backing for Tether and potential fundraising activities.
He has also requested emails, internal memoranda, meeting notes, electronic messages and financial documents involving Cantor, its subsidiaries and relevant affiliates.
The letter was issued in Blumenthal’s capacity as the ranking Democratic member of the Senate Permanent Subcommittee on Investigations. It represents a request for information as part of a congressional inquiry, not a formal determination that Cantor Fitzgerald or Tether broke the law.
As of October 9, no public response from Cantor Fitzgerald to the October 8 letter had been identified. The request does not announce a committee hearing or set a separate deadline for enforcement action.
