Trump appointed Howard Lutnick, a Wall Street executive, as the next Secretary of Commerce, responsible for supporting U.S. businesses and promoting economic growth. Lutnick is the CEO of Cantor Fitzgerald, a U.S. financial services firm that serves as the custodian for the stablecoin Tether, and Lutnick has endorsed Tether's asset reserves and is optimistic about the development of stablecoins and real-world assets (RWA).
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ToggleTether Custodian Cantor Fitzgerald
Cantor Fitzgerald, a U.S. financial services firm founded in 1945, focuses on institutional equity, fixed income sales and trading, and is one of the 24 primary dealer firms approved by the Federal Reserve Bank of New York, as well as a designated Authorized Participant (AP) for the Valkyrie Bitcoin Spot ETF.
Cantor Fitzgerald has been serving as the custodian for Tether since late 2021, managing many of its assets and also verifying parts of its balance sheet. In an interview with Bloomberg TV at the World Economic Forum in Davos in January, Cantor Fitzgerald's Chairman and CEO Howard Lutnick stated that Tether did have the USDT reserves it claimed to have.
(Tether's Custodian Cantor Fitzgerald Endorses: Tether Did Have Its Reserves)
He has also stated that stablecoins have increased the demand for U.S. Treasuries, which is beneficial to the U.S. economy, and is optimistic about the development of real-world assets (RWA) in the next decade.
Lutnick said at the Bitcoin conference in late July that the company plans to launch a Bitcoin financing business, providing an initial $2 billion financing facility for Bitcoin companies in need.
Lutnick to Lead Commerce Department and Trade Representative Office
The primary mission of the U.S. Department of Commerce is to promote economic growth and competitiveness in the United States, and it is the most direct link between the federal government and private businesses. Lutnick will be leading areas such as semiconductor plant subsidies, trade restrictions, and tariffs.
Trump said on his social media platform Truth Social: "He will lead our tariff and trade agenda and be directly responsible for the Office of the United States Trade Representative."
However, the Office of the United States Trade Representative (USTR) does not fall under the jurisdiction of the U.S. Department of Commerce. USTR is an independent agency that reports directly to the U.S. President. It is responsible for formulating and coordinating U.S. international trade policy, and representing the U.S. in international trade negotiations and agreements.
Bloomberg expects him to implement policies centered around Trump's favorite word "tariffs" and continue to promote a populist economic agenda. Lutnick criticized the Biden administration during the Trump campaign, stating that high inflation is "the most despicable thing you can do to your people".
