Cantor Fitzgerald Faces Senate Probe Over Tether Ties and…
By Abdelaziz Fathi
AI summary of the source article
Cantor Fitzgerald faces a Senate inquiry led by Senator Richard Blumenthal regarding its multifaceted relationship with stablecoin issuer Tether. Lawmakers are seeking records detailing Cantor's custody revenue, anti-money-laundering controls, sanctions compliance, and reported 5% equity stake in Tether, which estimates suggest has grown to approximately $10 billion. The probe also requests communications and records regarding any financial benefits or loans connected to Commerce Secretary Howard Lutnick and his family's ownership transfer in Cantor. Additionally, the inquiry follows scrutiny over Tether's handling of illicit wallets linked to sanctioned networks, with Cantor ordered to respond by October 23.
Why it matters
The probe could publicly disclose Cantor's custody fees, the economics of its Tether equity stake, and details on compliance oversight between a major Wall Street firm and the largest stablecoin issuer.
Key facts
- Senator Richard Blumenthal sent an inquiry to Cantor Chairman Brandon Lutnick requesting compliance and revenue records by October 23.
- The Senate letter cites estimates that Cantor's 5% interest in Tether increased in value from about $600 million in 2024 to approximately $10 billion.
- Tether held about $184.6 billion in circulation at the end of June, with reserves concentrated in U.S. Treasury securities.