Competition for the role of Treasury Secretary in Donald Trump’s administration is intensifying. Although Cantor Fitzgerald CEO Howard Lutnick emerged as top candidates, Trump picked him to head up trading.
Trump picks Tether’s Wall Street banker
Donald Trump, the next American president, prefers Howard Lutnick, the CEO of Cantor Fitzgerald and a major supporter of cryptocurrencies, who has long worked with the major stablecoin company Tether, to become his Secretary of Commerce instead of his Secretary of the Treasury.
Although Lutnick was a strong contender for the Treasury Department role, recent reports suggest his favor with Trump has faded. His proposed appointment as Secretary of Commerce, despite his involvement in Trump’s transition team, seems to confirm this change.
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Cantor Fitzgerald, led by Howard Lutnick, is a leading player in the financial industry, best known for its significant presence in the bond market. The company is one of the few that acts as a primary dealer and is authorized to deal directly with the Federal Reserve.
It has also ventured into the cryptocurrency space. Since 2021, Cantor Fitzgerald has been assisting Tether in managing the significant amount of US Treasury bonds backing its USDT stablecoin. Additionally, the company recently launched a bitcoin financing venture, providing loans to bitcoin investors, starting with an initial investment of $2 billion.
Although two sources believe the decision is final, Trump has not publicly confirmed the appointment and is known for making last-minute changes. They spoke anonymously because the announcement has not yet been officially made.
Lutnick could increase Trump’s crypto influence
As Secretary of Commerce, Lutnick would be critical in implementing the president’s economic and trade policies. The role covers a broad range of federal policies, including policies related to semiconductors, cybersecurity and patents.
Lutnick’s connection to Tether shows the broader relationship between the cryptocurrency industry and many other individuals Trump will likely appoint to key roles in his next administration. Trump has often emphasized his support from the crypto sector, which now has strong ties to members of both political parties.
He expressed his enthusiasm for crypto, especially bitcoin, during a CNBC podcast last year, stating that he only supports bitcoin and views other coins as insignificant. He also mentioned his strong support for a stablecoin called Tether.
Lutnick has argued that Bitcoin should be considered a commodity, which would subject it to less regulation than other financial instruments such as stocks or bonds. He believes that bitcoin’s lack of central oversight and its resistance to censorship make it superior to other cryptocurrencies.
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Donald Trump’s political influence on crypto appears to be strong as his social media company nears a deal to acquire Bakkt, a cryptocurrency trading platform owned by Intercontinental Exchange. The company, Trump Media and Technology Group, where Trump plans to retain his 53% ownership, is discussing an all-stock deal to buy Bakkt, according to two people familiar with the discussions.
