Sen. Richard Blumenthal on Thursday demanded records from Cantor Fitzgerald on its ties to Tether (USDT), citing a 5% stake now estimated at $10 billion.
Key Points:
- Blumenthal sent Cantor Chairman Brandon Lutnick 13 requests and set an Oct. 23 deadline for answers.
- The letter seeks Cantor's Tether revenue, compliance records and the Lutnick family's earnings from the partnership.
- Neither company immediately commented, and Democrats lack subpoena power while in the Senate minority.
Blumenthal Cantor Letter
Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, sent the letter to Brandon Lutnick, Cantor's chairman and the son of Commerce Secretary Howard Lutnick. It lists 13 requests and sets an Oct. 23 deadline.
The Connecticut senator wrote that Cantor's stake has grown from $600 million to an estimated $10 billion since President Donald Trump returned to office. The firm also collects tens of millions of dollars a year on assets it holds for Tether, the letter says. Howard Lutnick has made more than $250 million over the same period, including a $192 million distribution from Cantor, according to Blumenthal.
Neither company immediately responded to requests for comment.
Blumenthal asked whether Cantor requires regular audits of Tether by an independent auditor and how it tracks the issuer's compliance with sanctions rules. He also wants the terms under which Howard Lutnick gave up his Cantor ownership, including any Tether loan that helped move the stake to his children.
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Tether Probe Stakes
Blumenthal wrote that Cantor's dealings with Tether come "at the expense of America's national security." Most of Tether's assets sit in the United States under Cantor's custody, he argued, though the company says it operates from El Salvador. He said that gives Congress a window into the industry.
Democrats hold the Senate minority, so Blumenthal cannot compel Cantor to answer. A majority after the November election could give his party committee chairs with subpoena power, and traders on Kalshi and Polymarket reportedly put those odds at 61% and 64% on Thursday.
Iran Report
The letter follows a Sept. 28 report by the subcommittee's Democratic staff, which found that 84% of 846 wallets sanctioned or targeted over Iran links transacted almost exclusively in USDT. Blumenthal then asked the Treasury and Justice departments to investigate, and Tether said it had helped freeze nearly $550 million in Iran-linked USDT this year. Cantor has held reserves for Tether since 2021 and acquired rights to a 5% stake in 2024.
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