Pro-Bitcoin Executive Howard Lutnick Takes Helm as US Commerce Secretary

Pro-Bitcoin Executive Howard Lutnick Takes Helm as US Commerce Secretary

TLDR:

• Howard Lutnick confirmed as US Commerce Secretary with 51-45 Senate vote, becoming first openly pro-Bitcoin cabinet member in Trump administration
• Former Cantor Fitzgerald CEO resigned position and divested holdings to comply with ethics rules, previously managed Tether’s Treasury holdings and launched $2B Bitcoin initiative
• Lutnick supports unrestricted Bitcoin trading globally, comparing it to gold, and advocates for stablecoin regulation with US Treasury backing
• He backs Trump’s trade policies, dismissing inflation concerns about tariffs and supporting country-specific approach
• Current administration has implemented 10% Chinese import tariffs and increased steel/aluminum taxes, with pending 25% tariffs on Canadian/Mexican goods delayed until March 4

The United States Senate has confirmed Howard Lutnick as the new Secretary of Commerce in a 51-45 vote on February 18, 2025. Lutnick, the former CEO of Cantor Fitzgerald, brings his experience in traditional finance and cryptocurrency to President Donald Trump’s administration.

Before his appointment, Lutnick led Cantor Fitzgerald through various expansions into the cryptocurrency sector. His firm managed Tether’s US Treasury holdings that back the USDT stablecoin and launched a $2 billion Bitcoin financing program.

Congratulations @HowardLutnick on your confirmation as Secretary of Commerce. pic.twitter.com/E7wijxFnF5

— Michael Saylor (@saylor) February 19, 2025

To comply with government ethics rules, Lutnick stepped down from his position at Cantor Fitzgerald and sold his business holdings. The move marks the end of his tenure at the company he helped rebuild after the September 11, 2001 attacks, which claimed the lives of 658 employees, including his brother.

In his new role, Lutnick will oversee a department of 50,000 employees. Their responsibilities include managing economic data, census operations, and weather monitoring across the United States.

The appointment places a strong Bitcoin supporter in a key position within the US government. Lutnick has compared Bitcoin to gold and advocated for its free trade worldwide. At a Bitcoin conference earlier this year, he stated clearly that “Bitcoin should be free to trade everywhere in the world.”

During his confirmation hearing in January, Lutnick addressed concerns about digital assets. He supported regulating stablecoins and proposed that US dollar-backed stablecoins should maintain backing through US Treasuries. He also emphasized the need for regular audits to ensure transparency.

Tether Reserves

The new Commerce Secretary has defended Tether’s USDT reserves, stating they are fully backed by gold, Bitcoin, and US Treasuries. He pushed back against worries about stablecoins being used for illegal activities during his Senate confirmation hearing.

Lutnick’s appointment comes as the SEC reviews applications for staking in Ethereum ETFs. His presence in the Commerce Department could influence the department’s approach to digital assets.

On trade policy, Lutnick aligns with President Trump’s strategies. He supports the administration’s use of tariffs as tools in trade negotiations and dismissed arguments that tariffs lead to higher consumer prices as “nonsense.”

The Trump administration has already put in place several trade measures. These include 10% tariffs on Chinese imports and higher taxes on steel and aluminum products.

A planned 25% tariff on goods from Canada and Mexico is currently on hold until March 4. This delay provides time for further negotiations with these trading partners.

Lutnick’s confirmation received support from key figures in the cryptocurrency community. Michael Saylor and Senator Cynthia Lummis both congratulated him, with Lummis expressing confidence in his ability to strengthen the economy.

The new Secretary will play a key role in implementing Trump’s trade policies. This includes managing tariffs on a country-by-country basis to encourage what the administration considers fair trade practices.

His position on tariffs suggests possible changes in America’s trade relationships. While supporters see this as protecting American businesses, some conservative economists warn it could raise prices for US consumers.

The Commerce Department under Lutnick will continue overseeing various economic sectors. This includes managing trade policies, technological exports, and economic regulations that affect both domestic and international markets.

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