The wealthy U.S. Commerce Secretary Howard Lutnick, whose previous firm Cantor Fitzgerald is deeply invested in real estate, cryptocurrency and treasuries, has become the brash new face of Trump’s economic agenda, championing tariffs and digital assets while ethics watchdogs warn that the potential conflicts from his sprawling financial interests remain unchecked.
On March 20, Lutnick appeared on Fox News and urged viewers to buy Tesla stock as the markets plummeted. When they recovered in early April, he was quick with an upbeat post on X: “Never bet against Donald Trump. Never bet against America.” Lutnick is also fully on board with Trump’s pro-crypto agenda, which could benefit Cantor Fitzgerald — a firm now run by Lutnick’s sons.
While Lutnick has agreed to divest his business interests and step down from Cantor Fitzgerald, BGC Group and Newmark Group, he has not said whether he will recuse himself from Trump’s crypto task force that will guide a regulatory framework for digital assets. And even after leaving the roles at his finance and real estate businesses, Lutnick will retain significant holdings and must initially recuse from participating in certain matters involving 106 different corporate entities, according to The New York Times. Lutnick serves as “chairman or executive in at least four firms with ties to China," per The Times.
Lutnick is not the first to face questions about potential conflicts. Wilbur Ross, commerce secretary during Trump's first term, sparked inquiries into whether he divested enough or was forthcoming about some of his interests.
But the extent of Lutnick’s financial entanglements in the second Trump term represents an era in American governance where the head of a federal agency responsible for trade policy, Census data, weather research and job creation can operate with little accountability, according to public advocates and ethics experts interviewed by Salon.
Lutnick addressed the issue during Senate confirmation hearings, where he was confirmed by a 51-45 vote in February, saying: "I've made the decision that I've made enough money in my life. I can take care of myself, I can take care of my family. It is now my chance to serve the American people."
We need your help to stay independent
The hearings raised concerns about his business ties and the status of his promised divestments. Lutnick and other Trump officials have not responded to specific Senate complaints or watchdog inquiries about the status of these divestments. Critics argue the lack of transparency reflects an approach within the administration that downplays potential conflicts.
“In this administration the conflicts are so pervasive and rife, but I think it's fair to say that Lutnick does stand out,” said Robert Weissman, co-president of Public Citizen. “Particularly if he hasn't divested, even a guy with apparently more than a billion dollars investments across a wide area of business sectors who is in position to influence sectoral policy and the president's broad economic policy — I think he gets a five-star rating for conflicts of interest.”
While most Americans don’t think about the Commerce Department every day, it’s a vital federal agency that promotes job creation and economic growth by overseeing trade, the Census bureau, Minority Business Development Agency, National Oceanic and Atmospheric Administration, U.S. Patent and Trademark Office and sets standards that shape everything from weather forecasting and climate research to cybersecurity guidelines. Its work directly affects Americans’ daily lives, impacting prices, disaster response and how resources are allocated.
For example, one of the agencies the Commerce Department oversees, the National Institute of Standards and Technology, develops cybersecurity frameworks for government agencies and private companies to follow.
“The Commerce Department is a very important federal agency, there are a lot of things that people like you and I don't think about as we go about our daily lives,” said Hui Chen, an ethics consultant and former ethics and compliance expert at the Department of Justice who resigned during Trump’s first term.
Chen noted how things have escalated in the past decade, with conflicts of interest quickly becoming the norm across different government agencies.
"The system was set up with an assumption that when you tell people this is what you should do, they would do it"
“Our system was never designed for this level of conflict issues,” she said. “The system was set up with an assumption that when you tell people this is what you should do, they would do it.”
"Enforcement void"
Federal law prohibits cabinet members from participating in government matters where they have a financial interest. Lutnick, like other senior Trump officials, signed an ethics pledge to avoid such conflicts, but enforcement of it is difficult to police, especially under Trump who has his own unresolved conflicts.
Officially, Lutnick stepped down as chairman and CEO of Cantor Fitzgerald L.P., the holding company that controls Cantor Fitzgerald, BGC Group, Inc., as well as Newmark Group Inc., after he was confirmed. In Trump fashion, his sons Brandon Lutnick and Kyle Lutnick stepped up to become chairman and vice chairman of Cantor Fitzgerald LP, respectively.
“Howard Lutnick has agreed to divest his business interests in Cantor Fitzgerald, BGC Group, Inc. and Newmark Group, Inc. to comply with U.S. government ethics rules and does not expect any arrangement that involves selling shares on the open market,” according to a company statement in February.
The Tesla episode prompted a letter to the Office of Government Ethics from Sen. Elizabeth Warren and Rep. Maxine Waters, calling for an investigation and alleging Lutnick may have violated federal ethics laws given Lutnick’s family firm’s substantial holdings in Tesla and his ongoing divestment process.
“It is unclear whether Mr. Lutnick has yet obtained a waiver or completed his divestment of his equity interest in Cantor Fitzgerald,” the letter said, asking for a response by April 11. “The American public deserves better, and we trust that the Office of Government Ethics will recommend that the Commerce Department’s ethics officials investigate and take any appropriate disciplinary action against Secretary Lutnick.”
No investigation has been announced, and the Office of Government Ethics did not respond to a request for comment.
Last month, the Campaign Legal Center filed an ethics complaint against Lutnick with the Office of Government Ethics and ethics officials at the Department of Commerce, urging them to investigate the Tesla episode. The Commerce Department did not reply to a request for comment.
“The ethics laws that prohibit using public office for private gain exist to hold public officials accountable to their responsibility of serving the public good. No public good is served when a cabinet official acts as an influencer promoting a company’s stock,” the CLC's letter stated. “If senior officials in the executive branch are allowed to blatantly ignore ethics laws without consequence, it decreases public trust in our institutions. It is therefore imperative that OGE and Commerce investigate whether Secretary Lutnick improperly used his position to promote Tesla stock.”
"If senior officials in the executive branch are allowed to blatantly ignore ethics laws without consequence, it decreases public trust in our institutions"
Lutnick has not addressed the allegations publicly. None of the sources contacted for this story has been able to confirm whether he has divested fully to date.
“Right now, you have a situation where you know the inspector general's office is not either willing or able to act, the DOJ is not willing or able to act, Congress is not willing or able to act — then you're left with an enforcement void,” said Chen.
Cantor Fitzgerald, which lost hundreds of employees in the 9/11 attacks, has billion-dollar positions in MicroStrategy — the world’s largest corporate bitcoin holder — and is invested in Nvidia, a leading AI chipmaker.
The firm is deeply invested in cryptocurrencies including bitcoin and ethereum ETFs. It is a key custodian for Tether, a crypto platform with the most widely used stablecoin in the world that has faced persistent scrutiny over its reserve transparency and alleged use in illicit finance. Cantor Fitzgerald manages Tether reserves and holds a convertible debt stake, which prompted conflict-of-interest and national security concerns when Lutnick was nominated commerce secretary.
Warren sent a letter inquiring about Lutnick's connections to Tether ahead of Lutnick’s confirmation hearings, noting its reputation as “outlaws’ favorite cryptocurrency.” Warren also cited connections to criminal activity such as terrorist financing and sanctions evasion.
Some of the criticism directed at Lutnick has come from unlikely sources: Billionaire investor Bill Ackman publicly criticized Lutnick for his firm’s heavy exposure to bonds, arguing that Lutnick stands to profit when stocks crash.
Ackman’s comments, made on X on April 6, highlighted Cantor Fitzgerald’s longstanding role as a major player in the bond market and pointed to the firm’s indirect and direct positions in fixed income as problematic. The next day, Ackman attempted to tone down his comments, posting on X that it was “unfair of him to lash out at Lutnick," and noting “he is doing the best he can for the country.”
Regardless of whether Lutnick is fully divested, analysts say he could still profit enormously given the wide portfolio of industries and economic issues he oversees.
“In regular times, neither Bill Ackman or anyone else could make an accusation that decisions were being made because of the investments of key policymakers,” Weissman said. “And it is plausible to make those assertions now, because he possibly still has ongoing investments.”
Shares