In an unexpected development, President-elect Donald Trump is reportedly tapping Howard Lutnick, the Wall Street banker behind stablecoin giant Tether (USDT), to serve as his Secretary of Commerce rather than Treasury Secretary as many had speculated. The news, first reported by Punchbowl News and The Wall Street Journal, comes as a surprise twist in the lead-up to Trump’s impending return to the White House.
From Treasury Contender to Commerce Chief
Lutnick, CEO of influential financial firm Cantor Fitzgerald, had been one of several figures vying for the powerful Treasury Secretary position. However, reports in recent days suggested his stock had fallen in Trump’s eyes for that particular role. Tuesday’s revelation that he will instead be nominated as Commerce Secretary confirms this, despite Lutnick’s position on Trump’s transition team.
A Titan of Traditional Finance Embraces Crypto
Cantor Fitzgerald is a stalwart of traditional finance, renowned for its influential role in the bond market. This includes serving as a primary dealer—an exclusive group of firms allowed to trade directly with the Federal Reserve. But under Lutnick’s leadership, the company has also made significant forays into cryptocurrency.
Since 2021, Cantor Fitzgerald has assisted Tether in managing the massive US Treasury holdings that back its USDT stablecoin. The firm also recently announced a $2 billion funding initiative for a Bitcoin-focused business aimed at providing leverage to Bitcoin investors.
I’m a fan of crypto, but let me be very specific—Bitcoin, just Bitcoin. These other coins, they’re just not the thing.
Howard Lutnick, speaking on a CNBC podcast
Lutnick has argued that Bitcoin should be considered a commodity—subject to less regulation than assets like stocks or bonds—and that it outshines other cryptocurrencies given its lack of a central authority and its resistance to censorship. He’s also expressed enthusiasm for Tether, calling it “a stablecoin I’m a big fan of” in the same podcast appearance.
Ties to Trump and Tragedy
The 63-year-old New York native is a longtime friend of Trump and is already serving as co-chair of the President-elect’s transition team. Cantor Fitzgerald’s history is shadowed by tragedy: 658 of its employees, nearly a third of its global headcount, perished in the September 11 attacks.
The staggering loss of personnel forced the company to embrace electronic trading in place of how business was typically done in the Treasury market: human brokers making phone calls or client visits. Today, Wall Street is looking to crypto and blockchains as a way to disrupt old ways of doing business and recordkeeping.
Implications for Crypto Policy
While not as directly impactful on financial regulation as the Treasury Secretary role, Lutnick’s appointment as Commerce Secretary still positions a vocal crypto advocate within President Trump’s cabinet. This could signal a receptive environment for the digital asset industry in the upcoming administration.
However, many questions remain unanswered. Will Lutnick continue to champion Bitcoin and Tether from his government perch? How will his ties to a major stablecoin issuer be perceived? The coming months will be pivotal in revealing the trajectory of US crypto policy as the Trump era begins anew.
One thing is certain: with a figure like Howard Lutnick bridging the worlds of traditional finance and cryptocurrency at the highest levels of government, the intersection of digital assets and public policy is set to grow ever more complex and consequential. As the crypto space watches Washington with bated breath, the stage is set for a fascinating new chapter in the never-dull saga of cryptocurrency’s evolving role in the global financial landscape.
