Sen. Richard Blumenthal, the leading Democrat among Senate investigators, has opened a new line of inquiry into the relationship between Cantor Fitzgerald and Tether, the issuer of the USDT stablecoin. In a letter to Cantor Fitzgerald CEO Brandon Lutnick, Blumenthal asked the firm to explain its banking and sanctions safeguards tied to a partnership that places much of Tether’s assets in U.S. custody.
The inquiry builds on Blumenthal’s broader scrutiny of Tether’s role in Iran’s financial system. His latest questions focus on what Cantor Fitzgerald has done to assess allegations that USDT has been used in illicit finance and money laundering, including in Iran’s shadow banking network and in efforts to evade sanctions on Russia.
Letter targets reserve management relationship
Blumenthal’s letter centers on Cantor Fitzgerald’s role as the firm that holds and manages Tether’s U.S. reserves. According to the senator, most of Tether’s assets are located in the United States under Cantor Fitzgerald’s custodianship, making the relationship a key point of interest for investigators examining how the stablecoin issuer operates through the U.S. financial system.
The senator also pointed to the broader business connection between the two companies. The source article says Cantor Fitzgerald and Tether share multiple business interests, which adds to the significance of the reserve-management arrangement now under review.
Questions on sanctions and illicit finance claims
In the letter, Blumenthal asked Cantor Fitzgerald to describe what steps it has taken to investigate claims surrounding USDT’s alleged use in unlawful activity. Those claims, as outlined in the report, include alleged use of the stablecoin in illicit finance and money laundering.
Blumenthal specifically referenced assertions that USDT has been used within Iran’s shadow banking network and for Russia sanctions evasion. His questions seek details on the controls Cantor Fitzgerald has in place, and whether the firm has examined those allegations in connection with its work for Tether.
Brandon Lutnick and internal ties draw attention
Blumenthal’s letter was addressed to Cantor Fitzgerald CEO Brandon Lutnick. In raising concerns about the firm’s relationship with Tether, the senator also referenced Brandon Lutnick’s father’s history with the stablecoin company, according to the source report.
That mention adds a personal and corporate dimension to what is otherwise framed as a review of compliance safeguards. Still, the immediate focus described in the article is on banking oversight, sanctions controls and the handling of Tether’s reserves in the United States.
What happens next in the Senate inquiry
Neither Cantor Fitzgerald nor Tether immediately responded to requests for comment, according to the report. For now, the inquiry remains at the letter stage, with Blumenthal seeking information rather than announcing any formal enforcement action.
The move comes as Democrats look to expand their investigative reach in the Senate. The article notes that if they regain a Senate majority, they could obtain subpoena power that would allow them to compel documents and testimony, making future oversight of Tether’s U.S. relationships more forceful if the inquiry continues.
Source: www.coindesk.com