In a move signaling support for the cryptocurrency industry, President-elect Donald Trump has chosen Howard Lutnick, a vocal crypto advocate and CEO of Cantor Fitzgerald, as Secretary of Commerce. Lutnick's appointment could herald significant shifts in U.S. business policies, especially regarding digital assets.
Trump Picks Lutnick as Commerce Secretary Amid Crypto Advocacy
Reports surfaced on November 19th stating that United States President-elect Donald Trump has selected Howard Lutnick, CEO of Cantor Fitzgerald, to serve as his Secretary of Commerce, according to Cointelegraph. For quite some time, Lutnick has been an advocate for Bitcoin.
Promoting American trade at home and abroad is within the purview of the Secretary of Commerce. As one of the president's closest advisors, the secretary is an official in the United States Cabinet. It was widely believed that Lutnick, who is now serving as co-lead of the Trump transition team, would be the most qualified for the job in the Cabinet.
Because of his comments against Bitcoin and his connections to stablecoin issuer Tether, Lutnick has garnered attention in the crypto community.
Crypto Ties and Tether's Role
Since 2021 and 2023, respectively, Tether's US Treasury and bond portfolios have been handled by Cantor Fitzgerald, the Wall Street financial services firm that Lutnick has presided over since 1996. Despite demands for a financial audit, Tether—which has a market worth of $129 billion—has continued to face criticism over its accounting practices.
On multiple occasions, Lutnick voiced his faith in Tether's financial stability. Along with being a "big fan" of Bitcoin, he may have an unusual take on the cryptocurrency. Bitcoin "isn't an American thing," he declared in January, despite the fact that spot BTC ETFs provide "a way for Americans to buy" Bitcoin.
At the Bitcoin 2024 conference in July, Lutnick seemed more excited about Bitcoin.
“Cantor Fitzgerald is here to announce that we are launching a Bitcoin financing business. […] We are going to launch with $2 billion of lending.”
Challenges for Regulators and Lutnick's Appointment
Nothing is known at this time about that company. At the conference, Trump made an appearance as well.
Bitcoin is a commodity, according to Lutnick's September interview with Fox News. Concerning US regulators, he said:
“Let’s face it: they don’t even know how to do crypto and digital at all, and they have no idea; they still don’t understand how important it is to get it right.”
Gina Raimondo, the former governor of Rhode Island, will be succeeded by Lutnick.