Report: Trump eyes Tether custodian Lutnick for Commerce Chief

Cantor Fitzgerald CEO Howard Lutnick may join the cabinet being formed by President-elect Donald Trump.

Trump is reportedly poised to nominate Lutnick as U.S. Secretary of Commerce as he assembles a team for his second term in the White House, according to reports from The Wall Street Journal and other reputable outlets . While Lutnick was initially mentioned as a candidate for Treasury Secretary, recent developments suggest a stronger likelihood of him leading the Commerce Department.

Lutnick’s odds of becoming Treasury Secretary fell sharply on prediction platforms like Polymarket following this news. As of Nov. 18, there was a 32% probability of Lutnick securing the Treasury post. However, by press time, his odds had dropped to just 2%.

Experts believe Trump is inclined to pick Lutnick for the Commerce role due to their aligned views on tariffs and economic policies.

Lutnick’s possible appointment could have significant implications for the cryptocurrency sector, particularly stablecoins. Cantor Fitzgerald serves as a custodian for Tether (USDT) and manages the bulk of its U.S. Treasury Bill reserves, valued at $86 billion as of January.

The stablecoin operator attracted scrutiny for years due to doubts about its assets backing USDT. What crypto natives call FUD, negative news about a project, greatly reduced after Cantor Fitzgerald stepped in as a USDT custodian.

Dispelling reputational risks tied to the world’s largest stablecoin could be a shadow of things to come as the pro-Bitcoin (BTC) and crypto-friendly banker edged closer to state-backed influence.

Social media chit-chat guessed that Cantor Fitzgerald’s boss could encourage stablecoin adoption and regulation, a topic already gaining steam within the U.S. Congress. Lutnick advocated for fiat-pegged tokens powered by blockchain and asset tokenization back in April 2024.