Senator Richard Blumenthal has sent official requests to Binance, Tether, and two entities affiliated with the Trump family, setting a January 4 deadline for the submission of documents as part of a Senate investigation. The lawmaker explicitly warned that ignoring the subpoenas will force the Permanent Subcommittee on Investigations (PSI) to move to tougher enforcement measures.
Today Blumenthal heads the subcommittee's Democratic minority, but with the start of the new session of Congress in January he will assume the chairmanship — and gain the full toolkit to compel the production of information. According to PSI estimates, Tether (USDT) controls roughly 60% of the stablecoin market by capitalization.
What exactly interests the investigators
Binance and Tether are required to answer questions about the possible illicit use of cryptocurrencies and about alleged ties to the US administration. The Binance review began back in February; in March the exchange categorically rejected accusations of circumventing sanctions against Iran, calling them false.
A September report by subcommittee staff claims that 84% of 846 Iranian wallets under sanctions or seizure used exclusively USDT, with rare exceptions. On the day the document was published, Tether stated that over the year it had helped block Iran-related assets worth approximately $550 million.
In a letter dated October 22, Tether was asked for materials concerning the consulting firm Nxum. Its founder, Bo Hines, previously headed the crypto council at the White House, and Tether is reported to have transferred more than $6 million to Nxum.
Also in PSI's sights are the Trump family's crypto startup World Liberty Financial and Fight Fight Fight LLC, which oversees the Official Trump (TRUMP) token that figured in a May 2025 investigation. According to Blumenthal, such entities helped officials circumvent ethics rules and accept foreign funds.
Can the subcommittee compel the companies to cooperate
The Democratic majority in Congress gives Blumenthal leverage to step up PSI's work: the chairman has the right to issue subpoenas — legally binding orders to produce documents. At the same time, the official release does not specify whether this power is already being applied and what additional measures the subcommittee is considering.
The January 4 date will be an indicator of how the Democrat-led subcommittee will structure its interaction with the largest stablecoin issuer and Trump-linked projects.
Cryptalist analysis: The escalation of parliamentary pressure on Tether and Binance creates a new regulatory risk factor for the stablecoin market, where USDT's dominance makes it the most vulnerable link. Institutional participants should factor into their risk assessments the likelihood of stricter compliance requirements and possible restrictions on interaction with token projects affiliated with political figures.