WSJ: Trump’s Commerce Secretary Pick Leads Firm That Reportedly Struck $600M Tether Deal

According to a Wall Street Journal (WSJ) investigation, Howard Lutnick, Trump’s nominee for Commerce Secretary and current presidential transition adviser, maintains significant business connections with cryptocurrency giant Tether through his firm Cantor Fitzgerald.

The Journal reported on Saturday that Cantor Fitzgerald, where Lutnick serves as chairman, holds the majority of Tether’s $134 billion in assets, primarily in U.S. Treasury bills. This arrangement apparently generates tens of millions in annual fees for Cantor.

The WSJ investigation reveals previously undisclosed details about the relationship between the two companies. The WSJ report says that, within the past year, Cantor purportedly secured an approximately 5% ownership stake in Tether, valued by Cantor at up to $600 million, according to business associates familiar with the matter.

The timing of these revelations is significant, as the Journal notes that Tether is currently under investigation by both the Treasury and Justice departments for potential violations of anti-money-laundering and sanctions laws. Tether has strongly disputed these allegations, with a company spokesperson calling suggestions of aiding criminal actors or evading sanctions “outrageous.”

The Journal reports that Tether’s owner, Giancarlo Devasini, privately said earlier this year that Lutnick would leverage his political influence to help address challenges facing Tether, according to business associates of both men. The WSJ notes that Devasini, an Italian national, has avoided travelling to the U.S. due to concerns about the potential arrest.

Following the nomination announcement, Lutnick issued a statement indicating he would resign from Cantor upon Senate confirmation and divest his business interests to comply with government ethics requirements. A Tether spokesperson dismissed suggestions of regulatory influence, describing their relationship with Cantor as “entirely professional, based on managing reserves.”

On Friday, the WSJ reported that Trump had announced hedge fund manager Scott Bessent as his nominee for Treasury Secretary. Bessent, a seasoned investor and founder of Key Square Capital Management, is set to take on a key role in shaping the administration’s economic policies.

Bessent, formerly Chief Investment Officer at George Soros’s fund, has been a vocal advocate for Trump’s economic vision, defending policies such as deregulation and tariffs. He proposed a bold “3-3-3” framework for economic reform: reducing the budget deficit to 3% of GDP by 2028, achieving 3% annual GDP growth, and increasing U.S. energy output by 3 million barrels per day. Trump has praised Bessent as a brilliant thinker and key ally in advancing his “America First” agenda.

The crypto industry seems excited about the possibility of Bessent becoming the next U.S. Treasury Secretary.

Blockchain Association CEO Kristin Smith made the following statement:

Featured Image via Unsplash