USDT Issuer Tether’s Wall Street Banker Becomes Trump’s Pick for Commerce Chief: Reports
Competition for the Treasury secretary position in Donald Trump’s administration is intensifying. Trump chose Cantor Fitzgerald CEO Howard Lutnick as commerce chief even though he emerged as the top contender.
Wall Street banker Trump picks Tether
Incoming U.S. President Donald Trump, prefer Cantor Fitzgerald CEO Howard Lutnick, a strong supporter of cryptocurrencies and a long-time partner with major stablecoin company Tether, will serve as commerce secretary instead of treasury secretary.
Although Lutnick is a strong contender for the Treasury job, recent reports suggest his support for Trump has waned. Despite his involvement in Trump’s transition team, his proposed nomination for commerce secretary seemed to confirm the change.
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Cantor Fitzgerald, led by Howard Lutnick, is a leading figure in finance, particularly known for its significant influence in the bond market. The firm is one of the few primary dealers authorized to trade directly with the Federal Reserve.
It has also ventured into the cryptocurrency space. Since 2021, Cantor Fitzgerald has assisted Tether in managing the large amount of U.S. Treasuries backing its USDT stablecoin. Additionally, the company recently launched a Bitcoin financing venture to provide loans to Bitcoin investors with an initial investment of $2 billion.
While two sources believe the decision is final, Trump has yet to publicly confirm the appointment and is known for making last-minute changes. They spoke on condition of anonymity because the announcement has not yet been made official.
Lutnick May Boost Trump’s Cryptocurrency Influence
As Commerce Secretary, Lutnick is critical to executing the president’s economic and trade policies. This position covers a broad range of federal policy, including those related to semiconductors, cybersecurity, and patents.
Lutnick’s connection to Tether points to a broader relationship between the cryptocurrency industry and the many other individuals Trump may appoint to key positions in the next administration. Trump has frequently emphasized his support for the cryptocurrency industry, which now has close ties with members of both parties.
Last year, he expressed his enthusiasm for cryptocurrencies, specifically Bitcoin, on a CNBC podcast, saying he only supported Bitcoin and believed other currencies were irrelevant. He also mentioned his strong support for a stablecoin called Tether.
Lutnick believes 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 resistance to censorship make it superior to other cryptocurrencies.
Also read: How Donald Trump Media’s Bakkt Acquisition Boosted Cryptocurrency Prices
Donald Trump’s political influence on cryptocurrencies appears to be strong as his social media company is close to acquiring Bakkt, the cryptocurrency trading platform owned by Intercontinental Exchange. Trump Media and Technology Group, in which Trump plans to retain a 53% stake, is discussing an all-stock deal to acquire Bakkt, according to two people familiar with the matter.
