WASHINGTON, DC – During today’s Senate confirmation hearing for President Trump’s U.S. Commerce Secretary nominee, Howard Lutnick failed to quell concerns that the billionaire’s massive interests in cryptocurrency, computer chipmaker Nvidia, and the satellite industry will present unavoidable conflicts of interest given the sprawling Department’s oversight, rules, and research of each of these industries. 

“Billionaire Howard Lutnick left open a giant loophole with his claims he’ll divest from his multi-billion-dollar empire, which poses significant conflicts of interest with the Commerce Department: it appears his children will continue to run it. Lutnick is poised to oversee rules and research involving major industries that his family’s company is deeply invested in, raising serious questions about whether the best interests of American consumers or his business interests will be the highest priority,” said Accountable.US Executive Director Tony Carrk.

KEY QUESTIONS HOWARD LUTNICK FAILED TO ADDRESS IN TODAY’S CONFIRMATION HEARING: 

Potential Conflict Of Interest Between Lutnick’s Chinese Business Interests And Commerce Department Role Protecting U.S. Trade:

Potential Conflict Of Interest Between Lutnick’s Interests In Chipmaker Nvidia And Commerce Department Enforcement Of Trade Restrictions Against China:

  • If computer chipmaker Nvidia comes to lobby the Commerce Department, who can the American people expect Lutnick to side with—the United States’ national security interests and economic competitiveness, or with his firm’s billion dollar stake in Nvidia? In Lutnick’s most recent quarterly filing, his firm Cantor Fitzgerald reported almost $1.2 billion in holdings connected to chipmaker Nvidia, which was Cantor’s second-biggest holding at the time. This investment poses a stark conflict of interest to Lutnick’s potential role leading the Department of Commerce, which is central to enforcing trade restrictions against China and other U.S. competitors.

    In January 2025, the Biden Commerce Department unveiled “unprecedented new export controls” on computer chips and other technology in order to slow China’s development of artificial intelligence capabilities. An Nvidia executive directly criticized the policy as an “‘extreme ‘country cap,’” referring to the Commerce Department’s new quotas on sales of AI technology to various countries through which China may circumvent the Biden administration’s existing trade restrictions on advanced chips. Nvidia has also spent at least $240,000 while directly lobbying the Department of Commerce and other federal policymakers on chip trade policy in the first three quarters of 2024 alone.

Potential Conflict Of Interest Between Lutnick’s Cryptocurrency Interests And Commerce Department Oversight Of Crypto-Related Issues:

  • Given how deeply “entwined” Lutnick is with his business, how can the American people believe that he will not act in self-interest if the Commerce Department engages on any rules or research on cryptocurrency and blockchain technology under his leadership?

    Lutnick developed a reputation as a vocal advocate of cryptocurrencies including telling an industry conference that bitcoin, the leading form of crypto, should be traded all over the world “‘without exception and without limitation.” Lutnick has also been called a “key ally” of massive crypto firm Tether, in which his firm Cantor Fitzgerald holds about $600 million and with which Cantor was developing a new $2 billion lending project in November 2024.

    Lutnick’s financial interests in cryptocurrency pose a variety of conflicts with his potential role leading the Department of Commerce, which has a significant role in crypto policymaking and in researching crypto technologies.

    In 2022, President Biden issued an executive order on digital assets instructing the Secretary of Commerce to establish a framework for “‘enhancing United States competitiveness in, and leveraging of, digital asset technologies.’” President Trump has since replaced this order with a new one directing relevant departments and agencies to recommend digital asset policies that should be “rescinded or modified.”

    Additionally, the Commerce department has had a role in crypto policymaking, previously issuing a report on “Responsible Advancement Of U.S. Competitiveness In Digital Assets,” with Secretary Gina Raimondo calling for “‘effective regulatory approaches’” to crypto technologies. Additionally, the Commerce Department’s National Institute of Standards and Technology has multiple advanced projects researching blockchain, the underlying technology for cryptocurrencies.

Potential Conflict Of Interest Between Lutnick’s Satellite Industry Interests And Commerce Department’s Oversight Of Commercial Space Policy:

  • How are the American people supposed to believe that any commercial space regulations made under Lutnick’s Commerce Department are not shaped to benefit Cantor Fitzgerald or fellow billionaire Elon Musk? The Department of Commerce controls the Office of Space Commerce (OSC), which sets space commerce policy, and the department has various responsibilities that affect the satellite and commercial space industry.

    Lutnick and various Cantor Fitzgerald entities were shown to hold about 78 million shares, valued at about $80 million, in space imaging company Satellogic in a November 2024 filing. Cantor Fitzgerald also sponsored Satellogic’s $1.1 billionpublic launch in 2021, with Lutnick calling the company “‘uniquely positioned to dominate the earth observation industry.'” Although Lutnick resigned from Satellogic’s board following his nomination to be Secretary of Commerce, it does not appear that Cantor has disclosed divesting these shares in Satellogic.

    Notably, Satellogic began relocating to the U.S. just last year in order to compete for federal contracts after taking a $30 million strategic investment from massive cryptocurrency firm Tether, in which his firm Cantor Fitzgerald holds about $600 million, which was developing a multi-billion dollar deal with Cantor in November 2024, and for which Lutnick’s son has been an employee.

    Lutnick is also “close” to Elon Musk, whose SpaceX and Starlink businesses have direct interests in the Commerce Department’s commercial space policies. SpaceX has made regulatory comments to at least three major Commerce Dept. offices.

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