Howard Lutnick Considered For U.S. Commerce Secretary Role

According to CoinDesk, U.S. President-elect Donald Trump is considering Howard Lutnick, CEO of Cantor Fitzgerald, for the position of Commerce Secretary. Lutnick, known for his enthusiasm for cryptocurrency, has been a key figure in managing Tether's (USDT) substantial U.S. Treasury holdings. While initially a contender for the Treasury Secretary role, recent reports indicate that Lutnick's prospects for that position have diminished, leading to his potential nomination for the Commerce role. Cantor Fitzgerald, under Lutnick's leadership, has established itself as a significant player in the financial sector, particularly in the bond market. The firm is recognized as a primary dealer, allowing it to trade directly with the Federal Reserve. Since 2021, Cantor Fitzgerald has been involved in the cryptocurrency space, assisting Tether with its U.S. Treasury reserves and launching a bitcoin financing business with an initial $2 billion in funding. Lutnick has publicly expressed his support for bitcoin, distinguishing it from other cryptocurrencies and advocating for its treatment as a commodity to minimize regulatory oversight. Lutnick, a long-time associate of Trump and a New Yorker, is currently serving as co-chair of Trump's transition team. His firm, Cantor Fitzgerald, has a storied history, having lost 658 employees during the 9/11 attacks, which led to a shift towards electronic trading. This transition reflects a broader trend on Wall Street, where traditional financial practices are increasingly being challenged by innovations in cryptocurrency and blockchain technology.