Since his induction, US President Donald Trump has adopted several initiatives to support the growth of the cryptocurrency market. As part of the Trump administration’s pro-crypto policy, the new US regime has appointed several pro-crypto leaders to key administrative positions.
The appointment of Howard William Lutnick as the US Secretary of Commerce, is among those prominent appointments. However, acclaimed investor Bill Ackman accuses Lutnick of having a conflict of interest. The accusation has triggered heated debates. Here is what you should know.
Trump’s Tariff Policy & Economic Collapse
US President Donald Trump recently introduced an aggressive tariff policy. The policy primarily targets the so-called ‘Dirty 15’ countries – which, as per the president’s claim, have looted the US economy using their anti-US economic policies, barriers and tariffs.
The aggressive policy has affected almost all the major markets, including the US. In the last 24 hours alone, the US market has slipped by 5.97%, Europe by 3.81%, China by 7.34%, Japan by 7.83%, India by 3.24%, South Africa by 0.26% and Australia by 4.23%.
Even gold, widely considered a safer asset, declined from $3,131.027 to $3,037.467 between April 3 and 4.
The cryptocurrency market has also suffered a decline. In the last 24 hours, the crypto market has dropped by 11.2%. Bitcoin has decreased by 7.2%, Ethereum by 16.7%, XRP by 14.7%, BNB by 8.1%, Solana by 15.6%, and Dogecoin by 15.3%.
The Allegation against the US Commerce Secretary: Profiting From Economic Collapse
At the time the US economy is suffering the impact of the tariff policy, respected investors Bill Ackman alleges that US Commerce Secretary Howard Lutnick has benefited from the economic collapse caused by the aggressive tariff policy.
Ackman reveals that Lutnick’s firm is heavily invested in long-term bonds.
Reports suggest that bond prices are soaring. This usually happens when people are looking for safe havens and believe the economy is stalling.
Why This Could Be a Conflict of Interest
As Secretary of Commerce, Lutnick is responsible for doing anything and everything possible to support the growth of the US economy.
Ackman points out that if he profits when the economy declines, his financial interests could go against his public duty.
He also alleges that this could even weaken the president’s stance in important global negotiations, such as tariff talks.
What It Could Mean for the Crypto Market
The ongoing controversy and economic turbulence could further shake investor confidence across financial sectors, including crypto. If faith in traditional institutions weakens, crypto may see renewed attention as a decentralised alternative. However, short-term volatility is likely, as uncertainty over policy, ethics and global economic negotiations may keep traders cautious. Regulatory clarity and leadership trust will be essential for any sustainable recovery or crypto market boost amid this political-economic storm.
