USDT Issuer Tether Becomes Wall Street Banker’s Pick for Trump’s Trade Chief: Reports
The race for the role of Treasury Secretary in Donald Trump's administration is intensifying. Cantor Fitzgerald CEO Howard Lutnick emerged as the top contender, but Trump chose him to head the business.
Trump chooses Tether's Wall Street banker
Donald comes down, the incoming president of the United States, Howard Lutnick, CEO of Cantor Fitzgerald and a big supporter of cryptocurrencies, who has long worked with the main stablecoin company Tether, prefers to be his secretary of commerce instead of secretary of the treasury.
Although Lutnick has been a strong contender for the Treasury role, recent reports indicate that his favor with Trump has faded. Despite his involvement in Trump's transition team, his nomination for Commerce Secretary appears to confirm this shift.
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Cantor Fitzgerald, led by Howard Lutnick, is known for its strong presence in the financial sector, particularly in the bond market. The firm is one of the few that is authorized to trade directly with the Federal Reserve as a primary dealer.
It has also entered the cryptocurrency space. As of 2021, Cantor Fitzgerald has helped manage the vast majority of U.S. Treasuries backing the USDT stablecoin. In addition, the company recently launched a bitcoin financing business with an initial investment of $2 billion, providing loans to bitcoin investors.
While two sources believe the decision is final, Trump has not officially confirmed the appointment and has been known to make last-minute changes. He spoke on condition of anonymity because the announcement has not been made public.
Lutnick could boost Trump's crypto influence.
As secretary of commerce, Lutnick will be critical to implementing the president's economic and trade policies. The role covers a variety of federal policies, including those related to semiconductors, cybersecurity and patents.
Lutnick's relationship with Tether shows the broader relationship between the cryptocurrency industry and several other individuals Trump may appoint to key roles in his next administration. Trump has often highlighted his support for the crypto sector, which has strong ties to members of both political parties.
During a CNBC podcast last year, he expressed his enthusiasm for crypto, specifically Bitcoin, stating that he only supports Bitcoin and views other coins as insignificant. He also mentioned his strong support for the stablecoin called Tether.
Lutnick makes the case that bitcoin should be considered a commodity, subject to less regulation than other financial instruments like stocks or bonds. He believes that Bitcoin's lack of central control and resistance to censorship make it superior to other cryptocurrencies.
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