Bitcoin Backer Lutnick Confirmed as Commerce Secretary

The U.S. Senate confirmed Howard Lutnick as the new commerce secretary on Tuesday, February 18, with a 51-45 vote. Lutnick, a former CEO of Cantor Fitzgerald, is known for his advocacy of Bitcoin (BTC) and Tether (USDT).

Lutnick has previously stated that Bitcoin "should be free to trade everywhere in the world," likening it to gold. He has also defended Tether's USDT reserves, claiming they are fully backed by gold, Bitcoin, and U.S. Treasuries. During his Senate confirmation hearing, he pushed back against concerns about stablecoins' role in illegal funding.

Lutnick's appointment may influence a change in the Commerce Department's position on digital assets, given the SEC's review of applications for staking in Ethereum ETFs. Beyond cryptocurrency, Lutnick will play a crucial role in Trump's assertive trade ambitions. He has refuted arguments that tariffs cause inflation, calling them "nonsense," and defended their use as a weapon to compel trading partners into reducing trade barriers.

Lutnick's pro-tariff position supports Trump's call for higher tariffs to safeguard American businesses. However, this stance has come under fire from conservative economists who claim that tariffs increase prices for American consumers. Lutnick left Cantor Fitzgerald to adhere to federal ethics regulations, and the company has since strengthened its connections with the cryptocurrency sector by offering custody services to Tether.

In his role as Commerce Secretary, Lutnick will lead a department of more than 50,000 workers, managing trade policies, technological exports, and economic regulations. His confirmation could benefit both crypto enthusiasts and Trump's larger economic objectives. However, his pro-tariff position might worsen tensions with U.S. trading partners, likely leading to new trade negotiations.