TLDR
- Howard Lutnick confirmed as US Commerce Secretary in 51-45 Senate vote
- Former Cantor Fitzgerald CEO and Bitcoin advocate will oversee department of 50,000 employees
- Supports Trump’s tariff policies and dismisses inflation concerns
- Has compared Bitcoin to gold and advocates for its free trade globally
- Previously managed Tether’s US Treasury holdings and launched $2B Bitcoin financing initiative
Howard Lutnick, the former CEO of Cantor Fitzgerald and a vocal supporter of Bitcoin, has been confirmed as the new United States Secretary of Commerce. The Senate approved his nomination with a vote of 51-45 on Tuesday, February 18, 2025.
In his new role, Lutnick will lead a department of 50,000 employees responsible for managing economic data, census operations, and weather monitoring. The position puts him at the forefront of implementing the Trump administration’s trade policies.
During his confirmation hearing in January, Lutnick showed strong support for Trump’s tariff strategies. He dismissed arguments that tariffs lead to higher consumer prices, calling such concerns “nonsense.” Instead, he backed the idea of imposing tariffs on a country-by-country basis to encourage fair trade practices.
The Trump administration has already put in place several tariff measures, including a 10% tax on Chinese imports and increased rates on steel and aluminum. While plans for a 25% tariff on Canadian and Mexican goods exist, they have been postponed until March 4.
Before taking this position, Lutnick served as CEO of Cantor Fitzgerald, where he guided the company through a devastating period after the September 11, 2001 attacks. The tragedy claimed the lives of 658 employees, including his brother.
Under Lutnick’s leadership, Cantor Fitzgerald expanded its reach into the cryptocurrency sector. The firm managed Tether’s US Treasury holdings that back the USDT stablecoin and started a $2 billion Bitcoin financing program.
Wall Street Meets Bitcoin
Lutnick has been open about his support for Bitcoin, often comparing it to gold. At a Bitcoin conference earlier this year, he stated that Bitcoin “should be free to trade everywhere in the world.” His stance on cryptocurrency has earned him support from industry figures like Michael Saylor and Senator Cynthia Lummis.
During his time at Cantor Fitzgerald, the firm built strong ties with the cryptocurrency industry. The company took on a 5% stake in Tether, valued at approximately $600 million, showing Lutnick’s commitment to digital assets.
At his confirmation hearing, Lutnick also addressed the regulation of stablecoins. He supported the idea that US dollar-backed stablecoins should be backed by US Treasuries and undergo regular audits for transparency.
Congratulations @HowardLutnick on your confirmation as Secretary of Commerce. pic.twitter.com/E7wijxFnF5
— Michael Saylor⚡️ (@saylor) February 19, 2025
The timing of his appointment comes as the SEC reviews applications for staking in Ethereum ETFs, potentially influencing the Commerce Department’s approach to digital assets.
To comply with government ethics rules, Lutnick has stepped down from his position at Cantor Fitzgerald and sold his business holdings.
His confirmation has received mixed reactions. While crypto supporters celebrate having an advocate in a high government position, some economists worry about his pro-tariff stance and its potential impact on trade relationships.
The Trump administration’s trade policies under Lutnick’s leadership will likely focus on protecting American businesses through targeted tariffs, despite criticism from conservative economists about the effects on consumer prices.
Plans for new trade negotiations may emerge as Lutnick takes control of the Commerce Department’s economic policies and technological exports.
Following his confirmation, both Michael Saylor and Senator Cynthia Lummis shared their congratulations, with Lummis expressing confidence in Lutnick’s ability to strengthen the economy.
