Why Howard Lutnick's Appointment as Commerce Secretary Could Shift the Crypto Landscape

Donald Trump has chosen Wall Street billionaire and Bitcoin advocate Howard Lutnick to become the next Commerce Secretary, as reported by the Wall Street Journal. This decision comes after Lutnick's aspirations to head the Treasury Department did not materialize.

As the Commerce Secretary, Lutnick will oversee important responsibilities such as managing international trade, handling tariffs, conducting the census, and running the U.S. Patent and Trademark Office. However, this role lacks the economic influence that comes with being the Treasury Secretary, a position Lutnick was eager to take on, reportedly irritating Trump in the process.

Lutnick's reduced influence over crypto policy as Commerce Secretary is notable, especially since his firm, Cantor Fitzgerald, manages billions for stablecoin giant Tether. Had he secured the Treasury role, he could have influenced significant policy changes, including reversing Biden-era regulations that challenge some of the most popular crypto offerings.

The possibility of Trump selecting a pro-crypto Treasury chief now hangs in the balance. Previous frontrunner Scott Bessent, who supports crypto and Trump's plan for a federal Bitcoin reserve, may have been sidelined due to Lutnick's aggressive pursuit of the Treasury role. This week, Trump is set to interview new candidates, Kevin Warsh and Marc Rowan, neither of whom have strong ties to the crypto world. Warsh has supported the creation of a central bank digital currency (CBDC), a move many in the crypto community oppose, while Rowan has expressed skepticism about the necessity of digital assets in the economy.

This shifting landscape raises questions about how Lutnick's appointment will impact crypto policies and the future direction of cryptocurrency regulation under Trump's administration.