Crypto Community Cheers Trump’s Commerce Pick, Expecting Major Policy Shift Under Lutnick

As a seasoned researcher and analyst of financial markets, I find Howard Lutnick’s nomination for a high-ranking position within the Commerce Department intriguing, given his deep involvement in the cryptocurrency sector, particularly Bitcoin. His extensive experience at Cantor Fitzgerald, steering the firm into significant ventures within digital assets, and his vocal advocacy for treating Bitcoin as equivalent to traditional assets like gold, make him a compelling figure in this space.


Lutnick, a vocal Bitcoin proponent who has led his firm into significant cryptocurrency ventures, has consistently advocated for treating Bitcoin on par with traditional assets like gold. At the Bitcoin 2024 conference in Nashville this July, he declared, “Bitcoin is like gold and should be free trade everywhere in the world,” pledging to use Cantor Fitzgerald’s influence to advance that goal.

As a potential billionaire candidate, his background in cryptocurrencies is robust. During his tenure, Cantor Fitzgerald has significantly expanded its role within the digital asset sphere, particularly by acting as a custodian for Tether’s reserve funds. Unlike numerous other Wall Street giants, they have chosen to engage actively in the crypto market rather than keep their distance.

Earlier this year, Lutnick made a daring announcement at the Nashville conference: a $2 billion Bitcoin lending program aimed at offering extra purchasing power to Bitcoin owners. Moreover, he has been vocal in his support for categorizing Bitcoin as a commodity, a classification that would mean it faces less rigorous regulation compared to securities.

The excitement within the cryptocurrency industry over Lutnick’s nomination was clear from the swift response of key figures in the sector. Alex Grieve, the head of government affairs at the crypto investment firm Paradigm, called Lutnick’s initial appointment to Trump’s transition team “massive for cryptocurrencies” on a social media post.

Instead of him, Lutnick expressed his backing towards Bitcoin, rather than the entire cryptocurrency sector during an interview on CNBC last year. To clarify, while he is fond of cryptocurrencies, he emphasized that his preference lies solely with Bitcoin. On other coins, he mentioned they are essentially non-existent for him.

If approved by the Senate, Lutnick is set to lead the Commerce Department, an agency that has been instrumental in exploring methods to expand the digital assets industry within the U.S. His appointment arrives at a time when the cryptocurrency sector is advocating for a friendlier regulatory climate following actions perceived as overly aggressive by some industry leaders under the Biden administration.

The nomination has garnered backing not only from within the crypto world but also from significant figures outside it. Elon Musk, CEO of Tesla, who previously supported Lutnick for the Treasury Secretary position, commended him as a person capable of instigating change. Robert F. Kennedy Jr., in his endorsement, lauded Bitcoin as the “currency of freedom” and stated that Lutnick would be an unyielding advocate for it.

 

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2024-11-20 17:38