Emily Walker
Recent updates suggest that Howard Lutnick, the head of Cantor Fitzgerald and a known advocate for cryptocurrency efforts, is likely to be selected by President-elect Donald Trump to lead the US Department of Commerce (DOC).
This potential nomination raises questions about how Lutnick might influence policies that could greatly affect the cryptocurrency sector.
A Supportive Figure for Crypto Set to Lead the DOC
Lutnick has actively represented Trump’s transition team and has strongly voiced support for the administration’s economic policies and tariff strategies.
The Commerce Department’s new role is vital, especially in executing Trump’s suggested tariffs on imports, potentially impacting the wider US economy.
While this new role purportedly doesn’t directly tie to the digital asset field, it’s unclear if Lutnick would modify his involvement with Cantor Fitzgerald following this potential appointment.
Nevertheless, Lutnick has shown robust support for the cryptocurrency ecosystem, with his firm, valued at $13.2 billion, revealing plans earlier this year to establish a Bitcoin financing service to assist investors in the cryptocurrency market.
Lutnick highlighted the firm’s dedication to merging traditional finance with digital assets, stating, “We are excited to help unlock Bitcoin’s full potential and continue bridging the gap between traditional finance and digital assets.”
Beyond his responsibilities at Cantor Fitzgerald, Lutnick has ties to the crypto world through Tether, the largest stablecoin issuer globally. Tether recently secured a $100 million investment in Bitdeer Technologies Group, a Bitcoin mining firm listed in the US, a deal facilitated by Cantor Fitzgerald.
Lutnick Anticipates Major Growth for Bitcoin
Speaking about the links between Bitcoin and traditional finance, Lutnick reflected on the advancements seen over the past five years, while acknowledging ongoing challenges. He remarked, “Bitcoin has been an outsider in finance but is getting closer and closer.”
Despite the introduction of Bitcoin exchange-traded funds (ETFs) in the US after SEC approval, Lutnick indicated that conventional banks still struggle with providing transactional and custodial services for Bitcoin.
Yet, he maintains a positive outlook for Bitcoin’s future, asserting that BTC is a legitimate financial asset that the market will recognize. “When that happens, you’re going to see Bitcoin move in a very strong positive direction.” Lutnick believes that as Bitcoin gains acceptance in the financial world, its value will significantly rise over the next five years.
As Lutnick’s nomination verification is awaited, attention also shifts to the upcoming Treasury Department leadership appointment. Elon Musk, involved with the new Department of Government Efficiency (DOGE), has expressed support for Lutnick in the Treasury position.
Currently, Bitcoin is trading at $93,100, nearing its all-time high of $93,300 reached last week.
Image courtesy of DALL-E, chart thanks to TradingView.com