The Lutnick Family are deemed as the power brokers of crypto and its forthcoming regulatory evolution under the administration of US President Donald Trump.
At a time of upheaval as global markets adjust to President Trump’s tariff war with China, Brandon Lutnick, the youngest son of US Commerce Secretary Howard, makes his bold play to ‘launch a crypto acquisition vehicle’.
Currently operating as ‘Cantor Equity Partners’, a SPAC that will morph into a new crypto M&A fund of 21 Capital to be publicly listed with the capital support of SoftBank, Tether and Bitfinex.
Brandon (27), who transitioned to Chairman and CEO of Cantor Fitzgerald in December, succeeding his father, will lead the financing and planning of 21 Capital to become the ‘alternative fund’ for institutional investors to profit from crypto.
Cantor Fitzgerald, which brands itself as the pro-crypto investment and capital markets bank, has allocated $200m in cash to launch the venture to tap investment opportunities for an underserved $3tn market.
Remaining a work in progress, Lutnick’s fund is said to have secured a $3bn capital commitment from SoftBank, Tether, and Bitfinex. The venture will reportedly be funded through a bitcoin contribution, with Tether backing $1.5bn, while SoftBank and Bitfinex are expected to provide $900m and $600m, respectively.
As reported by the Financial Times: “Eventually, SoftBank, Tether and Bitfinex would see their investment of bitcoin converted into shares in 21 Capital at $10 per share and value the digital currency at $85,000 per coin.”
The backing of a heavyweight consortium lends credibility to Brandon as the youngest CEO on Wall Street. However, questions remain over the true dynamism and distinctiveness of the fund.
Media reports suggest 21 Capital aims to replicate the ‘stockpile playbook’ of MicroStrategy—the Nasdaq-listed vehicle led by Bitcoin advocate Michael J. Saylor. Rebranded as Strategy (trading under ‘MSTR’) as of February 2025, Saylor’s firm reportedly holds $36bn in Bitcoin.
To establish its credibility, 21 Capital must convince investors it is not simply mimicking MicroStrategy’s Bitcoin hoarding model, which has already been replicated by smaller, copycat funds.
The investment of 21 Capital raises eyebrows within capital markets and politics, on the relationships being formed under the Trump Administration. Prior to joining President Trump’s cabinet, Howard Lutnick, then CEO of Cantor Fitzgerald, directed the firm to become the primary custodian of Tether’s US dollar reserves.
At a time when Tether was under investigation by the SEC, both Lutnick and Cantor Fitzgerald publicly defended the company’s financial soundness, asserting that it held sufficient reserves to fully back its stablecoin transactions. His close connection to Tether was questioned by the Senate during his confirmation hearings for Commerce Secretary
In 2025, the Trump administration is preparing to introduce the first comprehensive regulatory frameworks recognising cryptocurrency as a component of the US financial system.
These efforts are being spearheaded by Treasury Secretary Scott Bessent and Mark Uyeda, Acting Chair of the Securities and Exchange Commission (SEC).
The administration is currently supporting two key legislative proposals aimed at regulating dollar-backed stablecoins: The STABLE Act in the House of Representatives and The GENIUS Act in the Senate
While not directly involved in drafting the legislation, Howard Lutnick, alongside Crypto Czar David Sacks, have publicly endorsed initiatives for the SEC to establish both a Strategic Bitcoin Reserve and a US Digital Asset Stockpile, intended to formalise the government’s role in digital asset holdings.
In a notable shift in enforcement priorities, the Department of Justice has disbanded its cryptocurrency fraud unit—indicating a broader move away from aggressive prosecution towards structured regulatory oversight.
Of concern, US regulators have also withdrawn previous federal enforcement requirements, meaning banks no longer need advance permission to engage in cryptocurrency-related activities.
Cantor Fitzgerald has embraced the regulatory transition as a strategic opportunity to launch new crypto-focused funds—reinforcing Brandon Lutnick’s vision and nascent leadership of the storied investment firm and its new horizons.
