Trump eyes Tether custodian Lutnick for Commerce Chief

Cantor Fitzgerald CEO Howard Lutnick may join the cabinet formed by President-elect Donald Trump.

Trump is reportedly ready to nominate Lutnick as US Secretary of Commerce as he builds a team for his second term in the White House, according to reports from The Wall Street Journal and other reputable outlets. Although Lutnick was initially rumored to be a candidate for Treasury Secretary, recent developments suggest he is more likely to lead the Commerce Department.

🚨BREAKING NEWS: TRUMP WILL NOMINATE LUTNICK FOR TRADE SECRETARY

President-elect Trump is expected to appoint Cantor Fitzgerald CEO Howard Lutnick as Secretary of Commerce.

Lutnick, a close ally, supported Trump’s vision of increasing U.S. manufacturing and supporting… pic.twitter.com/HlF3N8OJ3P

— Mario Nawfal (@MarioNawfal) 19 November 2024

Following this news, Lutnick’s chances of becoming Treasury Secretary dropped sharply on prediction platforms such as Polymarket. As of November 18, Lutnick had a 32% chance of taking over the Treasury job. However, by the time the news was published, his chances had dropped to only 2%.

Experts believe Trump was inclined to choose Lutnick for the Commerce role because of his accommodating views on tariffs and economic policies.

Odds for US Treasury Secretary election under Donald Trump | Source: Polimarket

Lutnick’s possible appointment could have significant impacts on the cryptocurrency industry, especially stablecoins. Cantor Fitzgerald serves as the custodian of Tether (USDT) and manages the bulk of US Treasury Bill reserves, worth $86 billion as of January.

The stablecoin operator has faced scrutiny for years due to doubts about its assets backing USDT. Negative news about a project, which crypto natives refer to as FUD, has largely diminished after Cantor Fitzgerald took over as USDT custodian.

The elimination of reputational risks attached to the world’s largest stablecoin could cast a shadow of events to come, as pro-Bitcoin (BTC) and crypto-friendly bankers move closer to state-backed influence.

Social media chatter has speculated that Cantor Fitzgerald’s boss may encourage stablecoin adoption and regulation, an issue already gaining momentum in the US Congress. Lutnick advocated for fiat-pegged tokens backed by blockchain and asset tokenization in April 2024.