Tuesday, 19 November 2024
by BD Banks
Over the last few days, the newly elected US President Donald Trump has filled a number of positions in his new cabinet, although the most important position for the Bitcoin community—the Secretary of the Treasury—remains open. The role of Secretary of the Treasury could be decisive for the establishment of a national strategic Bitcoin reserve, as promised by Trump during his election campaign.
According to rumors, it is a neck-and-neck race between Scott Bessent—former executive at George Soros’ hedge fund and founder of Key Square Hedge Fund—and Howard Lutnick, chairman and CEO of Cantor Fitzgerald. While Bessent has attracted attention in the past with pro-BTC comments, Lutnick is considered an absolute Bitcoin bull who is massively invested in BTC himself.
Lutnick revealed in a recent interview with Anthony Pompliano, “I own hundreds of millions worth of Bitcoin, and I expect that number to soon be in the billions.” During the Bitcoin 2024 conference, he stated, “Bitcoin is the same as gold. And Bitcoin should trade the same as gold—everywhere in the world, without exception.”
Adding to the discourse, Tesla CEO Elon Musk voiced his support for Lutnick via a post on X on Saturday morning. Musk wrote, “Would be interesting to hear more people weigh in on this for Donald Trump to consider feedback. My view fwiw is that Bessent is a business-as-usual choice, whereas Howard Lutnick will actually enact change. Business-as-usual is driving America bankrupt, so we need change one way or another.” This statement came hours before Musk appeared beside Trump at Madison Square Garden for a UFC event.
Musk’s endorsement directly responded to a post by Kyle Bass, CIO of Hayman Capital Management, who argued for Bessent’s qualifications. Bass had stated, “Scott Bessent is eminently more qualified than Howard Lutnick to run the US Treasury. Scott understands markets, economics, people, and geopolitics better than anyone I’ve ever interacted with. Markets have already anticipated a Bessent choice. Lutnick is not Trump’s answer.”
Robert F. Kennedy Jr., recently appointed as the United States Secretary of Health and Human Services (HHS) by Trump, also weighed in on the Treasury Secretary debate. Kennedy commented on Bass’s assertion, saying, “Bitcoin is the currency of freedom, a hedge against inflation for middle-class Americans, a remedy against the dollar’s downgrade from the world’s reserve currency, and the offramp from a ruinous national debt. Bitcoin will have no stronger advocate than Howard Lutnick.”
Tuur Demeester, a board member of the Texas Bitcoin Foundation, highlighted the massive impact which Kennedy could have with regards to US Bitcoin policies, stating, “Nov ’24: a Kennedy who is about to oversee 27% of US Federal spending gives Bitcoin his strongest possible endorsement—for individual liberty, to balance the budget, and to save the dollar.”
Notably, the contest for the Treasury Secretary position is complicated by reports from The New York Times and The Wall Street Journal. According to these sources, Lutnick, who co-chairs Trump’s transition team, has reportedly strained relations with the president-elect due to perceptions of overstepping and potential self-interest in the transition process.
Additional contenders for the role include former Federal Reserve Governor Kevin Warsh and Apollo Global Management CEO Marc Rowan. Both are under consideration as Trump’s advisors seek candidates aligned with the administration’s economic agenda, particularly the implementation of significant tariffs on imports—a cornerstone of Trump’s policy platform.
Moreover, there remains speculation about the emergence of a dark horse candidate. Robert Lighthizer, the former US Trade Representative during Trump’s first term and a key architect of the trade war with China, is being considered for a potential appointment as a “trade czar.”
According to Polymarket, it’s still a tight race. Scott Bessent is leading by a narrow margin with 36%, followed by Howard Lutnick with 34.9%. Kevin Warsh holds 16%, Marc Rowan 9%, Bill Hagerty 3%, and Robert Lighthizer 2%.
At press time, BTC traded at $91,908.