Finance Pro Linked to Tether, Howard Lutnick, Nominated For Trump’s Cabinet

Incoming US President, Donald Trump, has nominated the pro-crypto Wall Street veteran, Howard Lutnick, to serve as his Secretary for Commerce. Lutnick has a long history at the upper echelons of the US finance industry, having served as President and CEO of the financial services firm Cantor Fitzgerald since 1991, and becoming the firm’s chairman in 1996.

In recent years, Lutnick has been one of Trump’s biggest supporters, donating millions to the former president’s reelection campaign — even going as far as hosting a fundraising event at his home in August which raised over US$15 million (AU$22.9 million). Lutnick is also currently serving as co-chair of Trump’s transition team.

The role of Secretary of Commerce is a cabinet position, which means Lutnick will be one of Trump’s closest economic advisors, he’ll also be largely responsible for negotiating and implementing Trump’s promised tariff’s on all foreign imports.

Related: Trump Trade Tactics to Fuel Bitcoin Surge as Markets Stabilise

Lutnick Knows Crypto and Supports Bitcoin

Through his role at Cantor Fitzgerald Lutnick has been actively involved in the crypto industry, with the firm managing stablecoin issuer, Tether’s, treasury portfolio since 2021 and bond portfolio since 2023. In the past Lutnick has defended Tether against claims it lacks transparency and has misled the market over the level of collateral backing its stablecoin, telling Bloomberg TV in January:

I manage many, many of their assets…From what we’ve seen, and we did a lot of work, they have the money they say they have.

Howard Lutnick, Nominee for Secretary of Commerce

Lutnick is also pro-Bitcoin, having previously described himself as a “big fan” of the OG crypto. According to remarks he made in July at the Bitcoin 2024 conference, under his leadership Cantor Fitzgerald will be launching a Bitcoin financing business, which he says will initially have US$2 billion (AU$3 billion) in lending power:

Cantor Fitzgerald is here to announce that we are launching a Bitcoin financing business. […] We are going to launch with $2 billion of lending.

Howard Lutnick, Nominee for Secretary of Commerce

The full details of how this lending business will operate have not yet been made public.

Main Role to Be Tariffs and Trade

Despite his knowledge and experience in the crypto space, it looks like Lutnick’s main role will be imposing Trump’s tariffs.

In a statement Trump said that Lutnick “will lead our Tariff and Trade agenda”, adding that he would take the lead in negotiating trade deals and have “direct responsibility for the Office of the United States Trade Representative”. 

Many economists and analysts are wary of the potential for tariffs to inflate prices. A recent survey of US economic experts by the Clark Center for Global Markets found 96% agreed that imposing tariffs results in substantial costs being borne by consumers.

Lutnick seems to be fully on board with the tariffs, telling CNBC in September that he believes they’re a powerful negotiating chip:

Tariffs are an amazing tool for the president to use – we need to protect the American worker.

Howard Lutnick, Nominee for Secretary of Commerce

Related: Mark Cuban Predicts Trump’s Crypto Policies Will Boost Bitcoin’s Status and Price

He doubled down on this at a Trump rally at Madison Square Garden just last month, telling the crowd the US has been “letting the rest of the world eat our lunch”, before shouting “and it is time to Make America Great Again”.