At a recent White House summit, Commerce Secretary Howard Lutnick passionately endorsed the Trump administration’s plans to embrace cryptocurrencies, an industry historically unregulated and operating on the fringes of finance. Lutnick addressed crypto CEOs, stating that technology underpins the Trump presidency and that digital assets will play a significant role under President Donald Trump’s leadership. This shift in tone from the White House, which previously sidelined crypto companies, now actively supports the industry following Trump’s re-election. However, Lutnick’s longstanding ties to the crypto industry have raised ethical concerns as he promotes the administration’s pro-crypto agenda, which may primarily benefit existing crypto holders. Lutnick’s family-run Wall Street firm, Cantor Fitzgerald, is the primary banking partner for Tether, a controversial stablecoin issuer. Cantor Fitzgerald is also expanding its crypto holdings, including a new bitcoin financing business and a significant stake in MicroStrategy, the largest corporate holder of bitcoin. It is unclear whether Lutnick personally holds crypto assets, though his financial disclosure listed extensive holdings he pledged to sell within 90 days of confirmation. The status of this divestment process remains uncertain. Experts suggest Lutnick should avoid involvement in matters related to Cantor Fitzgerald while in office. Despite complying with conflict-of-interest laws by placing firm control with his son, questions persist about long-term benefits. The Trump administration’s crypto holdings and advocacy, including plans for a Strategic Bitcoin Reserve, have sparked debate among economists and lawmakers regarding potential risks and benefits. — news from CNN
