In recent days, President Donald Trump has been actively appointing individuals to key positions within his new administration. However, the pivotal role of Secretary of the Treasury remains unfilled, a position of great significance to the Bitcoin community. This appointment could be crucial in establishing a national strategic Bitcoin reserve, a promise Trump made during his election campaign.
Potential Candidates for Secretary of the Treasury
Two prominent figures are reportedly leading the race for this influential position: Scott Bessent, a former executive at George Soros’ hedge fund and founder of Key Square Hedge Fund, and Howard Lutnick, the chairman and CEO of Cantor Fitzgerald. While Bessent has previously made supportive remarks about Bitcoin, Lutnick is a staunch Bitcoin advocate with substantial investments in the digital currency.
In a recent interview with Anthony Pompliano, Lutnick disclosed, “I own hundreds of millions worth of Bitcoin, and I expect that number to soon be in the billions.” At the Bitcoin 2024 conference, he emphasized, “Bitcoin is the same as gold. And Bitcoin should trade the same as gold—everywhere in the world, without exception.”
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Lutnick’s Candidacy and Influential Endorsements
The possibility of Lutnick’s appointment has garnered significant attention and support. Tesla CEO Elon Musk expressed his backing for Lutnick in a post on X, stating, “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.” Musk’s endorsement came just hours before he appeared alongside Trump at a UFC event in Madison Square Garden.
Conversely, Kyle Bass, CIO of Hayman Capital Management, advocated for Bessent, arguing that Bessent is “eminently more qualified than Howard Lutnick to run the US Treasury.” Bass praised Bessent’s understanding of markets, economics, people, and geopolitics, suggesting that markets have already anticipated a Bessent appointment.
Additional Voices in the Debate
Robert F. Kennedy Jr., recently appointed as Secretary of Health and Human Services by Trump, also weighed in on the Treasury Secretary debate. Kennedy commented on Bass’s assertion, stating, “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, underscored the impact Kennedy could have on US Bitcoin policies, noting, “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.”
Challenges and Additional Contenders
The race for the Treasury Secretary position is further complicated by reports from The New York Times and The Wall Street Journal, suggesting tensions between Lutnick and Trump due to perceived overstepping and potential self-interest in the transition process. Other contenders include former Federal Reserve Governor Kevin Warsh and Apollo Global Management CEO Marc Rowan, both considered for their alignment with the administration’s economic agenda, including the implementation of significant tariffs on imports.
Speculation also surrounds a potential dark horse candidate, Robert Lighthizer, former US Trade Representative during Trump’s first term, known for his role in the trade war with China, who may be considered for a “trade czar” position.
Current Betting Odds and Market Sentiments
According to Polymarket, the race remains tight. Scott Bessent is leading with 36%, closely followed by Howard Lutnick at 34.9%. Kevin Warsh holds 16%, Marc Rowan 9%, Bill Hagerty 3%, and Robert Lighthizer 2%.
As of the latest updates, Bitcoin is trading at $91,908, highlighting its continued relevance in financial discussions and market dynamics.
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