Cantor Fitzgerald’s 5% Stake Revealed as Lutnick Prepares for Commerce Secretary Role
President-elect Donald Trump has nominated Cantor Fitzgerald CEO Howard Lutnick to be the next Secretary of Commerce. Lutnick, a Wall Street figure and staunch supporter of Trump, is expected to play a key role in setting the administration’s economic agenda. He was also a member of the Trump transition team and is best known for leading Cantor Fitzgerald, the firm he led after the 9/11 attacks.
Now, according to the Wall Street Journal, Cantor Fitzgerald has made significant progress under Lutnick’s leadership, acquiring a 5% stake in Tether, the world’s largest stablecoin issuer, worth approximately $600 million. Lutnick announced Thursday that he will resign from Cantor Fitzgerald’s post once the Senate confirms him as Commerce secretary. He also said he plans to sell his interest in the company to comply with government ethics rules.
A Tether spokesperson told the Wall Street Journal, “Tether’s relationship with Cantor is entirely professional and based on management reserves. The claim that Lutnick’s participation in the transition team would somehow translate into influence on regulatory action is laughable.” “
What does this mean for Tether?
Given Tether’s important position in the cryptocurrency market, this is seen by Cantor Fitzgerald as a strategic move. Tether is notorious for being unregulated and is currently under investigation by the U.S. Treasury and Justice Department for possible violations of anti-money laundering and sanctions laws.
Lutnick’s new role as commerce secretary, combined with his financial interests in Tether, raises questions about how his political influence may affect the regulatory environment for stablecoins and their business operations. Lutnick’s involvement with Tether as an investor and politician could have significant implications for the future of cryptocurrency regulation in the United States
