Cantor Fitzgerald CEO Howard Lutnick could join President-elect Donald Trump’s cabinet.
Trump is reportedly set to nominate Lutnick as U.S. Commerce Secretary as he assembles a team for his second term in the White House, according to reports from the Wall Street Journal and other reputable media outlets. While Lutnick had initially been mentioned as a candidate for Treasury secretary, recent developments suggest he is more likely to lead the Commerce Department.
Lutnick’s chances of becoming Treasury Secretary fell sharply on prediction platforms like Polymarket following this news. As of November 18, there was a 32% chance that Lutnick would get the Treasury job. However, at press time his chances had dropped to just 2%.
Experts believe Trump is inclined to choose Lutnick for the Commerce role because of their aligned views on tariffs and economic policies.
Lutnick’s possible appointment could have significant implications for the cryptocurrency sector, particularly stablecoins. Cantor Fitzgerald serves as a custodian for Tether (USDT) and manages the majority of its U.S. Treasury reserves, valued at $86 billion as of January.
The stablecoin operator has faced scrutiny for years due to doubts about its assets supporting USDT. What crypto natives call FUD, negative news about a project, was significantly reduced after Cantor Fitzgerald stepped in as USDT custodian.
Dispelling the reputational risks associated with the world’s largest stablecoin could be the shadow of things to come as the pro-Bitcoin (BTC) and cryptocurrency-friendly banker moves closer to state-backed influence.
Discussions on social networks have guessed that the boss of Cantor Fitzgerald could encourage the adoption and regulation of the stablecoin, a topic that is already gaining momentum in the US Congress. Lutnick has advocated for blockchain-powered fiat-anchored tokens and asset tokenization in April 2024.
