The US Senate has confirmed Howard Lutnick as the new Secretary of Commerce. Lutnick, the former CEO of financial firm Cantor Fitzgerald, was approved in a 52-45 vote on Feb. 18. He will now oversee trade policies under President Donald Trump’s administration.
Following his confirmation, Lutnick immediately resigned as CEO of Cantor Fitzgerald. His new role will involve managing the Department of Commerce, which has around 50,000 employees handling business data, patents, foreign investments, and even weather forecasting.
Lutnick to Divest His Crypto Investments
Lutnick has been a strong supporter of cryptocurrency. Recently in November 2024, Cantor Fitzgerald acquired a 5% stake in Tether, valued at up to $600 million. Tether a major stablecoin issuer, and has played a key role in its financial operations. In November 2023, the firm managed most of Tether’s USDT reserves, valued at $134 billion. That amount has since increased to over $141.7 billion.
Due to concerns about conflicts of interest, Lutnick has promised to sell shares in all 818 businesses and private investments in which he holds a stake. He has 90 days to complete this process, with a deadline set for May 19.
Senator Elizabeth Warren raised concerns about Lutnick’s ties to Tether during his confirmation hearing. She argued that his close relationship with the company could influence regulations, as he now has direct access to Trump and key financial policymakers.
Lutnick Support Trump’s Trade Policies and Tariff Plans
As commerce secretary, Lutnick will also take a leading role in implementing Trump’s trade policies. This includes working with top US trade negotiators to impose tariffs on foreign goods.
Trump has already enforced a 10% tariff on Chinese imports and increased taxes on foreign steel and aluminum. He has also threatened a 25% tariff on goods from Canada and Mexico but postponed that decision until early March.
During his Senate confirmation hearing, Lutnick dismissed concerns that tariffs would lead to inflation. He called such claims “nonsense” and backed Trump’s efforts to establish “reciprocity, fairness, and respect” in global trade.
Lutnick has openly supported Bitcoin and other cryptocurrencies. In December 2023, he praised Bitcoin’s halving cycles and decentralized nature, calling them key reasons for its long-term value. His appointment comes three months after Trump selected him to replace Gina Raimondo as commerce secretary.
President Trump has made several pro-crypto appointments. He appointed David Sacks as the White House AI and Crypto Czar while Paul Atkins, a former SEC commissioner, has been nominated as SEC Chair.
