Blumenthal Asks Cantor Fitzgerald for Records on Its Tether Stake and Custody Role

Blumenthal Seeks Insight Into Cantor Fitzgerald’s Tether Ties

Senator Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, has formally asked Cantor Fitzgerald’s chairman, Brandon Lutnick, for a detailed record of the firm’s relationship with the stable‑coin issuer Tether. The letter, dated October 8, lists 13 specific requests that cover everything from Cantor’s stake in Tether to the revenue it earns and the compliance safeguards it employs. The requested information must be delivered by October 23.

Why the Scrutiny?

The request follows a subcommittee minority report released on September 28 that linked Tether to a network of Iranian shadow banks. The report highlighted that 84 % of 846 wallets monitored by U.S. and Israeli authorities transacted almost exclusively in USDT, raising concerns about the stable‑coin’s role in sanction‑evading flows. Blumenthal’s letter notes that while Tether claims to be based in El Salvador, the bulk of its assets are held in the United States under Cantor’s custodial umbrella.

What the Letter Demands

1. Financials – Cantor’s annual revenue from the Tether partnership since its inception, and the annual earnings of the Lutnick family derived from that relationship.
2. Audit and Compliance – Whether Cantor requires independent audits of Tether and the mechanisms it uses to monitor sanctions and anti‑money‑laundering compliance.
3. Custodial Details – The terms of any loan or other financial provision from Tether to Howard Lutnick or his family that facilitated the transfer of his ownership stake to his children.
4. Investigative Actions – Records of any investigations Cantor has conducted into allegations that Tether’s stable‑coin was used for money laundering, specifically referencing Iranian shadow banking and Russian sanctions evasion.
5. Communication with the Trump Digital‑Asset Council – Any correspondence with members of the council that advised President Trump on digital assets.

All requests cover the period from January 1, 2023 to the present.

The Stakes for Cantor Fitzgerald

Cantor’s reported 5 % stake in Tether has reportedly ballooned from an estimated $600 million to roughly $10 billion since the Trump administration’s return to office, according to the International Consortium of Investigative Journalists. The firm also collects “tens of millions of dollars” annually from the assets it holds for Tether, while Howard Lutnick has reportedly earned over $250 million during the same period, including a $192 million distribution from Cantor.

The subpoena‑style letter underscores the growing regulatory focus on the intersection of traditional finance and crypto. Whether Cantor can provide the requested documentation without revealing proprietary information will be a key test of the firm’s transparency and compliance posture.

Looking Ahead

Cantor Fitzgerald has until October 23 to respond. The outcome will likely influence how other custodial and financial institutions structure their relationships with crypto issuers. For now, the Senate subcommittee’s inquiry signals a broader push to bring greater accountability to the rapidly evolving digital‑asset ecosystem.

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TL;DR: Senator Blumenthal has demanded Cantor Fitzgerald’s records on its Tether stake, revenue, and compliance practices, with a response deadline of October 23, amid growing scrutiny of crypto‑banking ties to sanctioned entities.