Cantor Fitzgerald Faces Senate Scrutiny Over Tether Ties
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Written by Felix Ng, staff editor
Edited by Yohan Yun, staff editor
Cantor Fitzgerald faces Senate Democrat’s questions over Tether ties
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Published: Oct 9, 2026
A recent letter from Senator Richard Blumenthal follows a report by Democratic investigators alleging that Tether’s USDT has been instrumental in Iran’s shadow banking network.
US investment bank Cantor Fitzgerald is under scrutiny from a Senate Democrat over its ties to Tether, with Senator Blumenthal demanding records on the firm’s partnership with the stablecoin issuer and the profits made by Howard Lutnick’s family from this arrangement.
In a letter dated Thursday, Blumenthal, the ranking Democrat on the Senate’s Permanent Subcommittee on Investigations, requested Cantor chairman Brandon Lutnick provide details on how the firm monitors Tether’s compliance with banking and sanctions laws, as well as all communications regarding Tether involving Howard Lutnick, even after he left Cantor.
"Disturbingly, Cantor Fitzgerald’s lucrative business arrangements with Tether come at the expense of America’s national security," Blumenthal wrote.
The inquiry delves into Cantor’s profitable partnership with Tether. Cantor Fitzgerald acquired a 5% stake in Tether in 2024 and reportedly custodes tens of billions of Tether’s US Treasury bill reserves. Blumenthal alleges that Cantor’s stake in Tether surged in estimated value from $600 million to $10 billion since Trump’s return to office, and that Howard Lutnick received over $250 million during this period, including a $192 million distribution from Cantor Fitzgerald.
The letter follows a Senate Permanent Subcommittee on Investigations report last month claiming Tether’s USDt (USDT) has become a crucial instrument for Iran’s shadow banking network.
Blumenthal called on the US Treasury and Justice Department to investigate potential sanction violations. Tether responded with a statement indicating it has been cooperating with law enforcement for years and has frozen nearly $550 million in Iran-linked USDT this year.
"Just as Tether has made untold millions in interest and investments from the stablecoins used in these illicit activities, so has Cantor Fitzgerald profited from its relationship with Tether," Blumenthal wrote in his latest letter to Cantor.
Cointelegraph reached out to both Cantor Fitzgerald and Tether for comment but did not receive an immediate response.
Cantor-Tether ties date back to 2021
Cantor’s relationship with Tether began in 2021 when it started acting as a custodian for a portion of the US Treasuries backing Tether’s reserves. Howard Lutnick, who oversaw Cantor as chairman and CEO during this period, helped negotiate the firm’s investment in Tether in April 2024. Lutnick stepped down from Cantor after the Senate confirmed him as Commerce Secretary in February 2025. The firm then appointed his sons, Brandon and an unnamed vice chairman.
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