The race for the role of Treasury Secretary in Donald Trump’s administration has become increasingly competitive. Initially, Howard Lutnick, CEO of Cantor Fitzgerald, emerged as a leading candidate. However, Trump ultimately selected him for the position of Commerce Secretary.
Trump Picks Tether’s Wall Street Banker
Donald Trump, the newly elected U.S. President, has chosen Howard Lutnick, CEO of Cantor Fitzgerald, to serve as his Commerce Secretary. Lutnick, a notable advocate for cryptocurrencies, has significant ties with Tether, a major player in the stablecoin market. Although Lutnick was a strong contender for the Treasury Secretary role, this shift in his nomination indicates a change in Trump’s strategic preferences.
Reports suggest that despite his involvement in Trump’s transition team, Lutnick’s favor has waned for the Treasury role. His nomination as Commerce Secretary highlights this development. Cantor Fitzgerald, under Lutnick’s leadership, plays a pivotal role in the financial sector, especially within the bond market. The firm is among the select primary dealers authorized to trade directly with the Federal Reserve.
In recent years, Cantor Fitzgerald has expanded into the cryptocurrency realm. Since 2021, the firm has been instrumental in managing the U.S. Treasuries backing Tether’s USDT stablecoin. Furthermore, Cantor Fitzgerald has initiated a bitcoin financing venture, offering loans to bitcoin investors with an initial investment of $2 billion.
While two sources believe the decision is final, Trump is known for his unpredictability, often making last-minute changes. These sources spoke under anonymity, as the official announcement remains pending.
Lutnick Might Boost Trump’s Crypto Influence
As Commerce Secretary, Lutnick would play a critical role in implementing the President’s economic and trade policies, which encompass a broad array of federal issues including semiconductors, cybersecurity, and patents. Lutnick’s association with Tether underscores the deeper connections between the cryptocurrency sector and several key figures Trump is likely to appoint in his upcoming administration.
Trump has consistently emphasized his support from the crypto community, which now boasts ties with members of both major political parties. He expressed his enthusiasm for cryptocurrencies, particularly bitcoin, during a CNBC podcast last year, asserting his allegiance to bitcoin and dismissing other coins as less significant. Trump also conveyed his strong endorsement of Tether, a prominent stablecoin.
Lutnick has advocated for bitcoin to be classified as a commodity, arguing that this designation would subject it to less regulation compared to other financial instruments like stocks or bonds. He perceives bitcoin’s decentralized nature and resistance to censorship as advantages over other cryptocurrencies.
Trump’s influence in the crypto space appears robust, as his social media venture approaches a deal to acquire Bakkt, a cryptocurrency trading platform owned by Intercontinental Exchange. Trump Media and Technology Group, where Trump intends to maintain his 53% ownership, is reportedly negotiating an all-stock acquisition of Bakkt, according to individuals familiar with the discussions.
