In a significant development for the cryptocurrency industry, former US president and current Republican presidential candidate Donald Trump announced that Howard Lutnick, CEO of Cantor Fitzgerald, will co-chair his potential transition team should he win the 2024 election. This decision underlines the growing intersection between the political sphere and the digital asset industry, with Lutnick recognised as a strong supporter of cryptocurrencies.
The Keeper of Tether
Cantor Fitzgerald, a large financial services company, has played a critical role in the cryptocurrency ecosystem, particularly through its relationship with Tether. Since late 2021, Cantor Fitzgerald has been the custodian of Tether’s assets. Tether (USDT), the largest stablecoin by market capitalisation, has been a focal point of debate and scrutiny within the industry. Despite ongoing concerns and speculation regarding the full coverage of USDT’s reserves, Tether has consistently defended its position, with Lutnick publicly affirming the safety of Tether’s assets. In an interview this year during the World Economic Forum in Davos, Lutnick said: ‘I manage many, many of their assets. From what we’ve seen, and we’ve done a lot of verification, they have the money.” This endorsement is particularly significant given the continued uncertainty expressed by some industry observers regarding the coverage of Tether’s reserves.
Reaction of the cryptocurrency industry
Lutnick’s appointment is seen as a significant positive signal for the cryptocurrency industry. Alexander Grieve, Vice President of Government Affairs at Paradigm, stressed the importance of Lutnick’s role in the potential Trump administration. Grieve noted on social media that Lutnick’s inclusion is “a huge thing for cryptocurrencies,” citing his active involvement in the House Republican Conference briefing on stablecoins and his generally pro-digital asset stance. Lutnick’s presence on Trump’s transition team should strengthen the former president’s pro-crypto stance. Trump has made it clear during his campaign that he intends to end what he describes as an ‘illegal and un-American crackdown’ on the cryptocurrency industry in the US. His choice of a pro-cryptocurrency running mate, J.D. Vance, further underlines his commitment to supporting the growth and integration of digital currencies into the US economy.
Political context and implications for industry
As the 2024 elections approach, the role of cryptocurrencies in US politics has become increasingly relevant. Millions of dollars are being channeled into super political action committees (PACs) with the aim of influencing policy decisions related to cryptocurrencies. The Trump campaign has capitalised on this trend, making openings to the digital asset community by promising to defend the interests of bitcoin miners and other cryptocurrency stakeholders. Meanwhile, the Democratic camp, led by current Vice President Kamala Harris, has also begun to engage with the cryptocurrency industry. Although Harris has not yet taken a definitive public position on essee, her dialogue efforts indicate a growing recognition of the industry’s importance.
