Senator Blumenthal Labels USDT a ‘Superhighway’ for Iranian Sanctions Evasion

USDT sanctions evasion — U.S. Senator Richard Blumenthal has called Tether’s USDT stablecoin a “superhighway” for sanctions evasion by Iran, referring findings from a subcommittee report to the Treasury and Justice Departments.

The report, released on Monday by the Permanent Subcommittee on Investigations which Blumenthal chairs, alleges that the stablecoin has been used to facilitate transactions for Iranian entities, including those linked to the nation’s military and terrorist groups. The findings were formally sent to the Treasury Department’s Office of Foreign Assets Control (OFAC) and the Department of Justice for potential enforcement action.

This action represents a significant escalation in U.S. political scrutiny of the world’s largest stablecoin issuer. The subcommittee’s investigation focused on Tether’s compliance with sanctions programs and its role in the broader digital asset ecosystem.

The referral to federal agencies indicates the matter is moving from a congressional inquiry to a potential regulatory and legal challenge for Tether Holdings. The company has consistently stated it complies with applicable laws and freezes addresses associated with sanctioned entities.