In accordance with recent reports, Howard Lutnick, the CEO of asset management firm Cantor Fitzgerald and a outstanding supporter of crypto initiatives, is anticipated to be nominated by President-elect Donald Trump to go the US Department of Commerce (DOC).
This nomination comes amidst growing speculation regarding Lutnick’s influence in shaping policies that would significantly impact the crypto industry.
The Pro-Crypto Leader Poised To Head The DOC
As the general public face of Trump’s transition team, Lutnick has been a vocal advocate for the incoming administration’s agenda, particularly concerning economic policies and tariffs.
The Commerce Department is poised to play an important role in implementing Trump’s proposed tariffs on imported goods, which could have wide-ranging effects on the US economy.
Although unconfirmed, Lutnick’s latest position in Trump’s administration would circuitously relate to the digital asset industry. Nonetheless, it has not been announced that his role at Cantor Fitzgerald will change after this potential appointment.
Nevertheless, Lutnick’s support for the crypto ecosystem has been strong, as earlier this yr, the firm he heads, which has a market valuation of $13.2 billion, announced plans to launch a specialized Bitcoin financing business aimed toward providing leverage for investors within the cryptocurrency market.
Lutnick emphasized the firm’s commitment to bridging traditional finance with digital assets, stating, “We’re excited to assist unlock Bitcoin’s full potential and proceed bridging the gap between traditional finance and digital assets.”
Along with his work at Cantor Fitzgerald, Lutnick’s reference to the crypto space extends to Tether, the world’s largest stablecoin issuer. Recently, Tether acquired a $100 million stake in Bitdeer Technologies Group, a US-listed Bitcoin mining company, with the transaction facilitated by Cantor Fitzgerald.
Lutnick Predicts Significant Value Increase For Bitcoin
Reflecting on the connection between Bitcoin and mainstream finance, Lutnick acknowledged the progress remodeled the past five years, declaring existing barriers. He noted, “The last five years, Bitcoin has been an outsider within the finance business but is coming closer and closer.”
Despite the emergence of Bitcoin exchange-traded funds (ETFs) within the US a yr after they were approved by the Securities and Exchange Commission (SEC), Lutnick emphasized that traditional banks still face challenges in providing transactional and custodial services related to Bitcoin.
Nonetheless, Lutnick stays optimistic about Bitcoin’s future, claiming that BTC is a financial asset and the market will treat it as such. “When that happens, you’re going to see Bitcoin move in a really strong positive direction.” He believes that as BTC becomes more accepted within the financial sector, its value will increase significantly over the following five years.
Because the transition team awaits confirmation of Lutnick’s nomination, attention can also be focused on who can be appointed to steer the Treasury Department. Elon Musk, who’s involved in the brand new Department of Government Efficiency (DOGE), has publicly supported Lutnick within the Treasury role.
On the time of writing, Bitcoin is trading at $93,100, approaching its record high of $93,300 set last week.
Featured image from DALL-E, chart from TradingView.com