Blumenthal Seeks Cantor Records on Tether Relationship

Sen. Richard Blumenthal has asked Cantor Fitzgerald to provide records about its relationship with stablecoin issuer Tether, including reserve custody, sanctions screening, financial ties and communications. The request, dated October 8, gives the firm until October 23 to respond and does not make a finding of wrongdoing. Blumenthal, the top Democrat on the Senate Permanent Subcommittee on Investigations, directed the request to Cantor chairman Brandon Lutnick. He is seeking information about the firm’s custody of assets backing Tether’s dollar-pegged USDT, its contracts and services, revenue from the relationship, and any independent audits. The letter also asks about Cantor’s reported equity interest in Tether and other investments connected to the issuer. A central question is how Cantor’s duties as a custodian differ from Tether’s ability to freeze tokens at specified blockchain addresses. Holding Treasury securities that support USDT does not by itself establish that Cantor can stop transfers between digital wallets. Blumenthal is asking what information Cantor receives about potential risks and how it responds to warnings or allegations of illicit finance.