Senator Richard Blumenthal, the ranking Democrat on the Senate's Permanent Subcommittee on Investigations, sent a letter on Thursday to Cantor Fitzgerald CEO Brandon Lutnick about the firm's business with Tether, CoinDesk reported. Tether issues the USDT stablecoin, and Cantor looks after its U.S. reserves.
Brandon Lutnick took charge of the company from his father, Howard Lutnick, when the elder Lutnick joined the Trump administration as Secretary of Commerce. Blumenthal has been examining Tether's role in Iran's financial system. His letter asks about Cantor's banking and sanctions controls, and about Howard Lutnick's past dealings with Tether.
One request asks Cantor to describe what it has done to look into claims that Tether's stablecoin has been used for money laundering, including in Iran's shadow banking network and to get around sanctions on Russia. Neither Cantor nor Tether immediately replied to CoinDesk's requests for comment.
As a member of the minority party, Blumenthal has limited power to compel answers. CoinDesk noted that could change if Democrats win a Senate majority in November, since committee leaders can issue subpoenas. Kalshi gave Democrats a 61% chance of retaking the Senate and Polymarket 64%, according to CoinDesk.
Why it matters for beginners
USDT is widely used, and many traders treat it like digital cash. A stablecoin is only as solid as the reserves behind it and the trust placed in its issuer, so political scrutiny of who holds those reserves is worth following. A senator's letter is not a finding of wrongdoing, and the claims it mentions have not been proven. Still, regulatory pressure can change where and how a stablecoin is available, which is one reason not to depend on a single token.
Source
Finvane summary of reporting by CoinDesk. Facts and figures come from the original report; the wording is ours.
Read the original report: Top Democrat among Senate investigators probes ties between Cantor Fitzgerald, Tether ↗For education only, not financial advice. Crypto assets are volatile and you can lose money.