According to recent reports, Howard Lutnick, the CEO of asset management firm Cantor Fitzgerald and a prominent proponent of crypto initiatives, is expected to nominated by newly elected President Donald Trump as head of the United States Department of Commerce (DOC).
This nomination comes amid growing speculation about Lutnick’s influence in shaping policies that could have a significant impact on the crypto industry.
The Pro-Crypto leader ready to lead the DOC
As the public face of Trump’s transition team, Lutnick has been an outspoken advocate for the new administration’s agenda, especially when it comes to economic policy and tariffs.
The Commerce Department is poised to play a crucial role in implementing Trump’s proposed tariffs on imported goods, which could have far-reaching consequences for the U.S. economy.
Although not confirmed, Lutnick’s new position in Trump’s administration is not said to be directly related to the digital property industry. However, it has not been announced that his role at Cantor Fitzgerald will change following this potential appointment.
Nevertheless, Lutnick’s support for the crypto ecosystem is strong, as earlier this year the company he leads, which has a market value of $13.2 billion, announced plans to launch a specialized Bitcoin financing company aimed at providing leverage to investors in the cryptocurrency market.
Lutnick highlighted the company’s commitment to bridging traditional finance with digital assets, saying, “We are excited to help unlock Bitcoin’s full potential and continue to bridge the gap between traditional finance and digital assets.”
In addition to his work at Cantor Fitzgerald, Lutnick’s connection to the crypto space extends to Tether, the world’s largest stablecoin issuer. Recently Tether bought a $100 million stake in Bitdeer Technologies Group, a US-listed Bitcoin mining company, with the transaction facilitated by Cantor Fitzgerald.
Lutnick predicts a significant increase in the value of Bitcoin
Reflecting on the relationship between Bitcoin and mainstream finance, Lutnick acknowledged the progress made over the past five years: point out existing barriers. He noted: “For the past five years, Bitcoin has been an outlier in the financial sector, but it is getting closer.”
Despite the rise of Bitcoin exchange traded funds (ETFs) in the US, a year after being approved by the Securities and Exchange Commission (SEC), Lutnick highlighted that traditional banks still face challenges in offering transactional and custody services related to Bitcoin.
However, Lutnick remains optimistic about Bitcoin’s future, claiming that BTC is a financial asset and the market will treat it as such. “If that happens, you will see Bitcoin moving in a very strong positive direction.” He believes that as BTC becomes more accepted in the world financial sectorits value will increase significantly over the next five years.
As the transition team waits for confirmation of Lutnick’s appointment, attention is also focused on who will be appointed to lead the Treasury Department. Elon Musk, who is involved in the new Department of Government Efficiency (DOGE), has publicly supported Lutnick in the Treasury role.
At the time of writing, Bitcoin is trading at $93,100, approaching last week’s all-time high of $93,300.
Featured image of DALL-E, chart from TradingView.com