Finance08 October, 20262 min read
Senator Richard Blumenthal Demands Answers From Cantor Fitzgerald CEO Brandon Lutnick On Tether Ties
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Blumenthal, top Democrat on SPI, demands records on Cantor Fitzgerald–Tether ties. He sent a letter to Cantor Fitzgerald CEO Brandon Lutnick seeking information.
5 outlets told this the same way.
Blumenthal presses Cantor-Tether
Senator Richard Blumenthal demanded answers about the ties between Cantor Fitzgerald and Tether, sending a letter requesting information to Cantor's CEO, Brandon Lutnick. Blumenthal questioned Lutnick about Cantor Fitzgerald's banking and sanctions safeguards and also his father’s history with Tether, while writing, "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 also wrote, "While Tether claims to operate out of El Salvador, the vast majority of its assets reside in the United States under your custodianship," as he pressed for details on Cantor's role in Tether-linked risks. Cantor Fitzgerald and Tether did not immediately respond to requests for comment sent to their spokespeople, leaving the letter as the latest congressional pressure point.
Staff report flags USDT use
Blumenthal released a staff report titled "Tethered to Terrorism" on September 28, 2026, arguing that Tether’s USDT had become a primary payment rail for Iran-linked networks and sanctioned entities tied to terrorist proxies. The staff review examined 846 wallets designated by the US Treasury’s Office of Foreign Assets Control (OFAC) and Israel’s National Bureau for Counter Terror Financing, with the report stating that "84% of those wallets relied heavily on USDT."
The report said two sanctioned Iranian oil smugglers moved over $603 million in USDT through networks connected to Hezbollah and Houthi factions, while it also reported different USDT reliance rates among the two designation lists. Blumenthal pressed Treasury Secretary Scott Bessent and Attorney General Todd Blanche to open inquiries into Tether’s operations, focusing on sanctions compliance and anti-money laundering practices.
Market and compliance stakes
Cantor Fitzgerald holds a 5% equity stake in Tether and manages a substantial portion of Tether’s US reserves, which the report says are estimated above $100 billion. Tether said it cooperates with law enforcement and claimed it helped freeze around $550 million in Iran-affiliated USDT during 2026, while the report contrasted that figure with the pair’s $603 million USDT movements.
“Cantor Fitzgerald holds a 5% equity stake in Tether.”
Pluang said Tether (USDT) maintained a substantial market cap of Rp3.293,56 trillion on its platform as of Oct 09, 2026, 04:42 WIB, and it listed a daily trading volume of Rp1.769,82 trillion. Pluang also stated that Cantor Fitzgerald must respond to Blumenthal’s record request by October 23, tying the congressional timeline to near-term questions about compliance and custody.