In a surprising twist, sources close to the Trump transition are indicating that Howard Lutnick, the Wall Street power broker and cryptocurrency enthusiast, is now the leading contender for Commerce Secretary in the incoming administration. The Cantor Fitzgerald CEO had been rumored as a potential pick for the coveted Treasury Secretary role, but insiders say that is now unlikely.
Lutnick’s Crypto Credentials
Lutnick, 63, has been one of Wall Street’s most vocal proponents of bitcoin and blockchain technology in recent years. His firm Cantor Fitzgerald has played a key behind-the-scenes role in the meteoric rise of Tether’s USDT stablecoin, serving as a primary custodian of the reserves backing the controversial but widely used crypto token since 2021.
“I am a fan of crypto, but let me be very specific: bitcoin, just bitcoin,” Lutnick declared on a CNBC podcast last year. “These other coins, they are just not a thing.” He went on to single out Tether’s USDT as an exception, calling himself a “big fan” of the stablecoin.
Bitcoin as a Commodity
The Cantor Fitzgerald chief has long argued that bitcoin should be regulated as a commodity, similar to gold or oil, rather than as a security. He believes this approach, which would subject the cryptocurrency to a lighter regulatory touch, is warranted given bitcoin’s decentralized nature and censorship-resistant properties.
If appointed Commerce Secretary, Lutnick would have a voice in shaping the federal government’s still-developing approach to cryptocurrency oversight and regulation. While primary responsibility lies with agencies like the SEC and CFTC, the Commerce Department is involved in setting national economic policy and priorities.
Tragedy and Transformation
Lutnick and Cantor Fitzgerald are no strangers to navigating upheaval and embracing technological disruption. The firm, a major player in the U.S. Treasury bond market, lost an astounding 658 employees in the September 11th attacks—two thirds of its New York workforce at the time.
In the aftermath of that tragedy, Cantor Fitzgerald had little choice but to rebuild its business around electronic trading systems rather than the phone-based dealer model that had long dominated the Treasury market. That painful but necessary transformation helped pave the way for the firm’s later interest in cryptocurrencies and blockchain technology.
Ties to Trump
A fellow New Yorker, Lutnick has known Donald Trump for years and was an early supporter of his 2024 comeback bid. He currently serves as co-chair of the Trump transition team, working to staff the incoming administration.
While Lutnick may not have landed the Treasury Secretary job that some expected, the Commerce Department would still give him significant influence over the direction of U.S. economic policy. If his nomination is confirmed, he would be the first Commerce Secretary to come from the world of cryptocurrency and blockchain.
The choice of Lutnick for a Cabinet role suggests that the second Trump administration intends to take a business-friendly approach to the fast-growing crypto sector. With his mix of Wall Street credibility and crypto enthusiasm, Lutnick could help the new president navigate the complex challenges of integrating blockchain technology into the mainstream economy.
Of course, any major initiatives would need to be coordinated with the SEC, CFTC, Treasury Department and other agencies that share responsibility for overseeing the novel asset class. Striking the right balance between encouraging innovation and protecting investors and the financial system will be a key challenge.
The Road Ahead
As the opening months of the new administration unfold, all eyes in the crypto world will be on Lutnick to see how he translates his long-time bitcoin boosterism into concrete policy steps at the Commerce Department.
Having a prominent ally in the Cabinet could be a major boost for the industry after years of strained relations with regulators and policymakers. But Lutnick will also face pressure to show that his ties to Tether and Cantor’s crypto trading operations won’t lead to preferential treatment or lax oversight.
For now, the crypto community is closely watching to see if Lutnick’s nomination is formally submitted and confirmed. His ascent to a top economic policy post would be one of the clearest signs yet that the cryptocurrency revolution is moving from the fringes to the center of the mainstream business world.
