USDT Issuer Tether’s Wall Street Banker Becomes Trump’s Pick for Commerce Chief: Reports

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The competition for the role of Treasury Secretary in Donald Trump’s administration is intensifying. Though Howard Lutnick, CEO of Cantor Fitzgerald, emerged as top contenders, Trump picked him for commerce chief.

Trump Picks Tether’s Wall Street Banker

Donald Trump, the incoming U.S. President, prefers Howard Lutnick, the CEO of Cantor Fitzgerald and a big supporter of cryptocurrencies who has long worked with the major stablecoin company Tether, to be his Commerce Secretary instead of Treasury Secretary.

Although Lutnick was a strong contender for the Treasury role, recent reports suggest his favor with Trump has faded. His proposed nomination for Commerce Secretary, despite his involvement in Trump’s transition team, seems to confirm this change.

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Cantor Fitzgerald, headed by Howard Lutnick, is a leading player in the financial sector, especially known for its significant presence in the bond market. The firm is one of the select few that acts as a primary dealer, 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 substantial amount of U.S. Treasuries that support its USDT stablecoin. Additionally, the firm recently launched a bitcoin financing venture, providing loans to bitcoin investors, starting with an initial investment of $2 billion.

While two sources believe the decision is final, Trump has not publicly confirmed the appointment and is known for making last-minute changes. They spoke anonymously as the announcement has not been officially made.

Lutnick Might Boost Trump’s Crypto Influence

As Commerce Secretary, Lutnick would be crucial in carrying out the President’s economic and trade policies. The role covers a wide range of federal policies, including those related to semiconductors, cybersecurity, and patents.

Lutnick’s connection to Tether shows the wider relationship between the cryptocurrency industry and many other individuals Trump is likely to appoint to key roles in his next government. Trump has often highlighted his backing from the crypto sector, which now has strong connections to members of both political parties.

He expressed his enthusiasm for crypto, specifically bitcoin, during a CNBC podcast last year, stating that he only supports bitcoin and views other coins as insignificant. He also mentioned his strong support for a stablecoin named Tether.

Lutnick has made the case that bitcoin should be regarded as a commodity, which would subject it to less regulation than other financial instruments like stocks or bonds. He believes that bitcoin’s lack of central oversight and its resistance to censorship make it superior to other cryptocurrencies.

Also read: How Donald Trump Media’s Bakkt Acquisition Could Boost Crypto Prices

Donald Trump’s political influence on crypto seems to be strong as his social media company is nearing a deal to acquire Bakkt, a cryptocurrency trading platform owned by Intercontinental Exchange. The company, Trump Media and Technology Group, where Trump plans to keep his 53% ownership, is discussing an all-stock deal to buy Bakkt, according to two people familiar with the discussions.