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The Progressive

NewsWire

A project of Common Dreams

For Immediate Release
Contact:

Report: Trump’s Billionaire Commerce Pick Howard Lutnick’s Empire Deeply Conflicted With Investments in Cryptocurrency, Computer Chipmaker Nvidia & Satellite industry

Ahead of Howard Lutnick’s Senate confirmation hearing for U.S. Commerce Secretary, new analyses from government watchdog Accountable.US – first reported by the Financial Times – detail how the billionaire’s massive interests in cryptocurrency, massive computer chipmaker Nvidia, and the satellite industry pose seemingly unavoidable conflicts of interests given the sprawling Department’s oversight, rules, and research of each of these industries. At the center of these conflicts is Lutnick’s financial services company, Cantor Fitzgerald, and its financial entanglements. While Lutnick claims he will divest from his business empire, he is reportedly so deeply “entwined” with Cantor that dozens of current and former employees and associates told Bloomberg “his grip on his various businesses is bolted tight” and “his knot of conflicts is unlikely to loosen easily.”

“Billionaire Howard Lutnick is so inextricably tied up in his financial services company that his claims to divest from potential Commerce Department business means little in practical terms, especially when two of his children still work for his firm,” said Accountable.US Executive Director Tony Carrk. “Lutnick conveniently did not rule out that his children would take stakes in the conflicted companies when he leaves for the administration- conflicts of interest that would loom over the department and could cost everyday consumers.

“Take, for example, Lutnick’s company’s giant investment in cryptocurrency and how, as Commerce Secretary, he would be poised to help write federal crypto rules and potentially manipulate research to benefit himself, his family, partners, and friends on Wall Street,” added Carrk. “Given how virtually impossible it would be for Lutnick to avoid such conflicts, senators should demand the fine details on how he would do so. Rich corporate special interests getting the insider edge over the needs of everyday Americans are quickly coming to define the Trump administration.”

WHAT SENATORS NEED TO KNOW ABOUT LUTNICK’S POTENTIAL CONFLICTS OF INTEREST:

  • Crypto Conflicts: Previous reporting revealed Lutnick’s financial services company Cantor Fitzgerald has a major partnership with giant cryptocurrency firm Tether, in which Cantor holds about $600 million and with which Cantor joined a new $2 billion lending project in November 2024. Lutnick is known as a vocal advocate of cryptocurrencies, including statements at an industry conference that the leading form of crypto, bitcoin, should be accepted “‘without exception and without limitation.” Accountable.US’ new analysis found Lutnick’s vast stakes in the crypto industry could conflict with his potential control of the U.S. Department of Commerce, which plays a central role in developing crypto regulations and in researching crypto technologies.
  • Chipmaker Conflicts: Accountable.US research has found that—despite Lutnick’s reputation as a “China hawk”— Cantor Fitzgerald’s nearly $1.2 billion investment in major artificial intelligence chipmaker Nvidia could pose a conflict of interest with Lutnick’s potential role enforcing trade restrictions against China as Commerce Secretary. Notably, the Biden Commerce Department issued a “dramatic last-minute” rule to protect national security and competitiveness by blocking China’s “back door” efforts to obtain advanced artificial intelligence chips made by Nvidia and others.
  • Satellite Industry Conflicts: Accountable.US found Lutnick and Cantor Fitzgerald’s deep interests in the commercial space industry could pose specific conflicts with the Commerce Department while also benefiting his “close” ally and fellow billionaire Elon Musk.

ADDITIONAL BACKGROUND:

  • FACT SHEET on Howard Lutnick Ahead of Senate Confirmation Hearing for the Position of Secretary of the U.S. Department of Commerce

Accountable.US is a nonpartisan watchdog that exposes corruption in public life and holds government officials and corporate special interests accountable by bringing their influence and misconduct to light. In doing so, we make way for policies that advance the interests of all Americans, not just the rich and powerful.