Donald Trump taps crypto advocate Lutnick as commerce secretary

As an analyst with extensive experience in the financial sector, I find Howard Lutnick’s appointment as the Secretary of Commerce under President-elect Trump intriguing. Given his background in cryptocurrency and his long-standing role at Cantor Fitzgerald, it seems that Trump is looking to tap into a unique blend of traditional finance and emerging technology.


It is being reported that President-elect Donald Trump has selected Howard Lutnick, the CEO of Cantor Fitzgerald, as his pick for the position of Secretary of Commerce. Notably, Lutnick holds a strong history of advocating for cryptocurrencies.

The role of the U.S. Commerce Secretary involves promoting American business, both within our country and internationally. This individual serves in the United States Cabinet, a group of top advisors to the President. At present, Lutnick holds a significant position in the Trump transition team and is widely considered as a strong contender for the Cabinet post.

A billionaire looking after Tether’s billions

In the realm of cryptocurrencies, Lutnick has drawn notice due to his connections with the stablecoin provider Tether (USDT), as well as his comments regarding Bitcoin (BTC).

Since 2021, Cantor Fitzgerald – the financial services company led by Lutnick on Wall Street since 1996 – has overseen Tether’s US Treasury holdings, and starting from 2023, it has managed their bond portfolio as well. Tether, with a market capitalization of $129 billion, has faced scrutiny regarding its accounting methods and has declined requests for a financial audit, drawing criticism.

On multiple occasions, Lutnick openly demonstrated faith in Tether’s financial stability. Moreover, he is known as a strong supporter of Bitcoin, although his views on it might be distinctive. In January, he stated that Spot BTC ETFs serve as a means for Americans to invest in Bitcoin, yet he also mentioned that Bitcoin isn’t solely an American phenomenon.

Lutnick likes Bitcoin

At the Bitcoin Conference in July, Lutnick showed great excitement about Bitcoin. He declared, “Cantor Fitzgerald is ready to unveil the initiation of a Bitcoin lending venture. […] Our intention is to debut with a $2 billion loan facility.

The details of that business have yet to be disclosed. Trump also appeared at the conference.

In September, Lutnick stated on Fox News that Bitcoin should be considered as a type of merchandise. Moreover, he voiced his concerns about U.S. regulatory bodies, expressing dissatisfaction with their approach.

“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.” 

Lutnick will replace former Rhode Island governor Gina Raimondo.

 

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2024-11-20 01:04