Cantor Fitzgerald, a U.S.-based private financial services firm, is facing questions from U.S. Senator Richard Blumenthal over its business ties with stablecoin issuer Tether, following concerns about the token’s use in Iran-linked financial activity.
In a letter sent on Thursday, October 8, 2026, Blumenthal asked the investment bank to explain its role in the partnership and how much former chairman Howard Lutnick and his family have earned from it.
Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, sent the letter to Cantor Fitzgerald Chairman Brandon Lutnick.
Blumenthal requested records detailing how Cantor Fitzgerald monitors Tether’s compliance with banking and sanctions laws. He also requested communications between Cantor and Howard Lutnick about Tether, including messages exchanged after Lutnick left the firm.
“Disturbingly, Cantor Fitzgerald’s lucrative business arrangements with Tether come at the expense of America’s national security,” Blumenthal wrote.
Cantor’s business ties with Tether
The inquiry puts the spotlight on a partnership that has brought major financial interests to Cantor Fitzgerald.
The firm’s relationship with Tether began in 2021, when it started holding some of the U.S. Treasury bills backing USDT. In 2024, Cantor acquired rights to a 5% stake in Tether.
Blumenthal alleges that Cantor’s stake increased in estimated value from $600 million to $10 billion after Donald Trump returned to office. He also said Howard Lutnick received more than $250 million during that period, including a $192 million distribution from Cantor Fitzgerald.
Senate report raises concerns over USDT
The questions come after a September report by Democratic investigators on the same Senate subcommittee raised concerns about USDT’s use in Iran.
The report, cited by The Wall Street Journal, said stablecoin had become a major payment tool for Iran-linked financial networks. Investigators reviewed 846 transaction accounts connected to Iran-related activity and found that nearly 84% of the wallets had carried out transactions only with USDT.
USDT is designed to maintain a value close to one U.S. dollar. Unlike payments that depend on traditional banks, the stablecoin can move between people and businesses through public blockchains. The Senate report said this has helped Iran-linked networks move money outside the usual banking system despite U.S. sanctions.
Blumenthal has called on the U.S. Treasury and Justice Department to investigate possible sanctions violations. He also wants Cantor to explain whether it requires independent audits of Tether, whether it has considered ending the partnership, and what steps it has taken to investigate claims of illegal financial activity.
Tether responds to sanctions concerns
Moreover, Tether had initially pushed back against concerns that USDT gives sanctioned groups a safe way to move money. The company said it has worked with law enforcement for years and froze nearly $550 million in Iran-linked USDT during 2026.
It also reported freezing more than $344 million across two addresses in April after receiving information from the U.S. Office of Foreign Assets Control and other law enforcement agencies.
Questions over Lutnick’s departure
Blumenthal is also seeking details about Howard Lutnick’s departure from Cantor, including whether Tether provided loans or other financial support to Lutnick or his family to help transfer ownership to his children. Lutnick stepped down after becoming commerce secretary in February 2025, while his son Brandon became Cantor’s chairman.
The Crypto Times has reached out to Cantor Fitzgerald and Tether for comment but has not received any immediate response as of now. Blumenthal has asked Cantor to provide the requested information by October 23, 2026.
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