Blumenthal Seeks Details on Cantor’s Tether Reserve Custody

Democratic Sen. Richard Blumenthal is seeking details about Cantor Fitzgerald’s custody of Tether’s U.S. reserves and the stablecoin’s alleged use in sanction-evasion networks.

Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter Oct. 8 to Cantor Fitzgerald CEO Brandon Lutnick. He asked Lutnick to explain the company’s business relationship with Tether, including its role in holding and managing the stablecoin issuer’s U.S. reserve assets.

The senator also requested information about Cantor’s banking operations and sanctions-compliance controls. Blumenthal’s questions address allegations that Tether’s USDT was used in Iranian shadow-banking networks and to evade U.S. sanctions on Russia.

Blumenthal said Cantor’s relationship with Tether could provide insight as Congress considers digital-asset regulation. He also asked about Lutnick’s past dealings with Tether and the steps Cantor has taken to investigate alleged illicit-finance and money-laundering activity involving USDT.

Blumenthal and other Democratic senators, including Sen. Elizabeth Warren, currently hold minority-party positions with limited investigative authority. A Democratic Senate majority after the November midterm elections could place them in committee leadership roles with subpoena power.