Senate investigation into Canto Fitzgerald's connection with Tether

Bank Cantor Fitzgerald faces Senate review again over its business association with Tether

U.S. investment bank Cantor Fitzgerald is once again in the spotlight of the U.S. Senate over its business association with stablecoin issuer Tether. Senator Richard Blumenthal asked the agency to provide details on how it oversees Tether's compliance with bank regulations and sanctions.

In a letter sent Thursday, Blumenthal, the minority leader on the Senate Permanent Subcommittee on Investigations, pressured Canto Chairman Brandon Lutnick to provide documents and explanations about Canto's partnership with Tether, including records involving Commerce Secretary Howard Lutnick's communications about the stablecoin arrangement.

Core Points

• Senator Richard Blumenthal is asking Canto provide a record of how he monitored Tether's compliance with banking and sanctions laws.
• The letter requested documents of all communications involving Howard Lutnik about Tether, including his activities after leaving Cantor.
• Blumenthal pointed out that Canto reportedly held a stake in Tether and was responsible for the custody of related reserve assets, claiming that its value had increased significantly and made payments to the Lutnik family.
• This new round of investigations follows previous allegations by Democratic investigators that the USDT was used for illegal financial channels linked to Iran.
• According to media reports, Canto and Tether have not yet responded immediately to requests for comment.

Blumenthal intensifies questioning about Canto's partnership with Tether

Blumenthal's letter to Canto Chairman Brandon Lutnik noted that the "lucrative business arrangement" between Canto and Tether could raise national security concerns. Based on the content of the letter, he asked for clarification of the measures Canto took to ensure Tether complied with banking and sanctions requirements.

The senator also asked for transparency on the scope of Commerce Secretary Howard Lutnick's involvement. Specifically, Blumenthal requested records of communications between Howard Lutnik and Tether, which covered not only his tenure as head of Canto, but also the period after he stepped down from the company.

In the letter, Blumenthal said the arrangements appeared to be "at the expense of U.S. national security" and positioned the request as part of an effort to understand whether the corporate structure surrounding major stablecoin issuers meets U.S. enforcement expectations.

Allegations of value growth and payments to the Lutnik family

In addition to the compliance process, Blumenthal's inquiry also focused on the financial terms and results of stakeholders associated with Lutnik. The letter noted that Canto obtained the right to a 5% stake in Tether in 2024 and accused Canto of having custody of tens of billions of dollars in Tether-linked U.S. Treasury bonds.

布卢门撒尔进一步指控称，自特朗普重返办公室以来，坎托与Tether相关的股权估计价值从6亿美元增至100亿美元；在此期间，霍华德·卢特尼克获得了超过2.5亿美元的收益，其中包括从坎托·菲茨杰拉德获得的1.92亿美元分配。

这些主张作为参议员信函中的指控提出，并与调查更广泛的关切联系在一起，即关注稳定币在金融体系中的作用。

民主党调查人员此前对USDT及与伊朗关联网络的担忧

这封新信函紧随上个月参议院常设调查小组委员会报道的早期民主党调查结果之后。此前的报道指控称，Tether的USDT已成为伊朗影子银行网络的“关键工具”。

针对这一更广泛的担忧，Tether表示多年来一直与执法部门合作，并宣布今年已冻结了近5.5亿美元与伊朗相关的USDT资金。此前也有报道提及Tether关于冻结与伊朗相关非法金融案件资金的说法。

布卢门撒尔的最新信函呼应了这一推理逻辑，认为如果USDT被用于非法活动，那么从该生态系统中获取收入的企业——例如通过持股和储备托管角色获利的坎托——应受到更严格的审查。

参与时间线及剥离问题

据文章显示，坎托与Tether的关系始于2021年，当时坎托开始充当支持Tether储备的部分美国国债的托管方。

Reports said that Howard Lutnick oversaw Canto's work during this period and helped negotiate Canto's investment in Tether in April 2024. The timeline then changed as Lutnik moved into government: in February 2025, he resigned from Canto after the Senate confirmed him as Commerce Secretary. Canto subsequently appointed his son Brandon as chairman and the other son as vice-chairman.

Blumenthal's latest request also goes beyond the scope of the Tether reserve structure. He asked for details about the terms and process for Howard Lutnick to divest his stake from Canto, including whether there were any loans or financing provided to Lutnick or his family from Tether or during the transfer of ownership to his children.

The senator also sought answers to the following question: Did Canto request an independent audit of Tether? Has Canto reviewed options to terminate partnerships? And what steps has Canto taken to investigate allegations of illicit finance and sanctions evasion?

Canto and the future direction of compliance supervision of U.S. stablecoins

Blumenthal asked Canto to respond by October 23, setting a clear deadline for the bank to provide records and resolve compliance and governance issues. For market participants, the key uncertainties are how Canto documents his oversight of Tether's legal compliance-especially given the Senate's focus on potential sanctions and illicit financial links-and whether regulators will regard custody and investment arrangements for stablecoins as broader enforcement priorities.