Tether's relationship with investment bank Cantor Fitzgerald is under investigation by senior Senate Democrats.

BlockBeats news, October 9: Richard Blumenthal, the Democratic chief member of the U.S. Senate Permanent Subcommittee on Investigations, is demanding that Wall Street investment bank Cantor Fitzgerald explain its relationship with Tether, the world's largest stablecoin issuer. If Democrats continue to make progress in the November elections, Blumenthal and his colleagues may soon gain greater investigative authority.

On Thursday, Blumenthal sent a letter to Cantor CEO Brandon Lutnick. Brandon is the son of U.S. President Donald Trump's Commerce Secretary Howard Lutnick, who handed over company management to his son after joining the U.S. government. Blumenthal has previously been investigating Tether's role in Iran's financial system and pointed out that there is a lucrative business relationship between USDT issuer Tether and Cantor Fitzgerald, which manages its U.S. reserve assets.

Blumenthal wrote in the letter: "Just as Tether has earned incalculable interest income and investment returns from stablecoins used in these illegal activities, Cantor Fitzgerald has also profited from its partnership with Tether." He also asked Brandon Lutnick to explain the company's banking operations and sanctions compliance safeguards, and inquired about his father's previous dealings with Tether during his tenure at Cantor.