Howard Lutnick, CEO of Cantor Fitzgerald, Offers Hope and Justice to 9/11 Families

After the 9/11 attacks, Howard Lutnick, CEO of Cantor Fitzgerald, assured anxious families that no one on the top floors survived. Despite criticism, Lutnick's message was seen as necessary for the grieving families to begin their mourning process. Lutnick himself lost a brother in the attacks and survived due to being late dropping off his son. He is now seen as a last hope for justice by the 9/11 families.

Howard Lutnick, the billionaire Commerce Secretary under President Trump, has once again found himself at the center of controversy. In the months before joining the Trump administration, Lutnick's company, Cantor Fitzgerald, quietly acquired a major stake in Tether, a controversial digital currency. Tether, based in El Salvador, has been alleged to be involved in illicit activities, including funding for North Korea's nuclear weapons program, Mexican drug cartels, and Russian arms dealers, among others [1].

Critics argue that Lutnick's investment in Tether, which amounts to approximately 5% of the company, raises significant concerns about potential conflicts of interest. Senator Elizabeth Warren (D-Mass.) sent a letter to Lutnick prior to his confirmation hearing, expressing her "serious concern" over his "deep involvement with and support for Tether, a known facilitator of criminal activity" [1]. Lutnick's role in pushing for the passage of the Genius Act, which regulates and legitimizes stablecoins like Tether, has further fueled the controversy. The Genius Act, passed into law on July 18, 2023, requires stablecoins to be backed only by US treasuries, a move that benefits Cantor Fitzgerald as it will manage these treasuries on behalf of Tether [1].

Lutnick's investment in Tether has been seen as a prescient move, as the Genius Act has now made stablecoins like Tether more transparent and regulated. However, critics argue that Lutnick's influence in the passage of the Genius Act is a conflict of interest. Cantor Fitzgerald stands to gain billions in fees through its role in managing Tether's treasuries [1].

Despite Lutnick's nominal divestment from Cantor Fitzgerald after joining the Trump administration, the firm is now run by his sons, Brandon and Kyle, who attended elite schools and have faced criticism for their own investments and activities [1]. Lutnick's sons have been criticized for allowing Cantor Fitzgerald investors to bet on the eventual reversal of Trump's tariffs in court, and Kyle has also faced criticism for his musical endeavors under the name Kxtz [1].

The controversy surrounding Lutnick's cryptocurrency deal has not deterred him from his role as Commerce Secretary. Lutnick has maintained that he has fully complied with the terms of his ethics agreement with respect to divestiture and recusals, and that he will continue to do so [1]. However, the ongoing scrutiny of his business dealings and his role in the passage of the Genius Act has raised questions about his suitability for his current position.

References:
[1] https://www.dailymail.co.uk/news/article-14956441/commerce-secretary-howard-lutnick-shady-crypto-deal-trump.html