Bessent Blames Lutnick for Delaying Megaspeed Blacklist Amid Nvidia Scandal Fallout

Key points

• Bessent told CNBC that Treasury, War, USTR, and State favored putting Megaspeed on the entity list for months, but Commerce 'has the pen.'
• Bessent expressed frustration that China received advanced Nvidia chips, violating Trump’s directives, and called for an explanation of Commerce’s internal processes.
• CNN reports that Trump advisers are discussing whether to dismiss Lutnick, though the White House maintains 'complete confidence' in him.
• CNBC notes that Cantor Fitzgerald, led by Lutnick’s sons, reduced its Nvidia holdings by 49% between September 2025 and March 2026, coinciding with intelligence warnings about Megaspeed.
• Senators Jim Banks, Elizabeth Warren, and Chris Coons have demanded Lutnick, Rubio, and Stephen Miller preserve records on chip exports and intelligence warnings.

Background

This dispute follows the resignation of Nvidia CEO Jensen Huang, who stepped down after reports of an affair with Alice Huang, a Megaspeed executive suspected of being a Chinese spy. The scandal has intensified scrutiny on the Trump administration’s oversight of chip exports to China. Lutnick, a longtime friend of Trump, has faced bipartisan pressure to testify before Congress regarding his department’s handling of export licenses and intelligence warnings. The conflict highlights deep internal divisions within the administration over how to balance economic interests with national security concerns regarding advanced AI chips.

How outlets are covering it

Politico and The New York Times focus on Bessent’s public accusation that Commerce delayed the Megaspeed blacklist despite months of interagency support. CNN adds that Trump advisers are now discussing Lutnick’s potential ouster, though the White House has defended him. CNBC provides a financial angle, highlighting that Cantor Fitzgerald, led by Lutnick’s sons, significantly reduced its Nvidia holdings during the period when intelligence warnings were circulating, raising questions about potential conflicts of interest. While all sources agree on the core dispute, they differ in emphasis: Politico and NYT focus on the bureaucratic clash, CNN on the political fallout, and CNBC on the financial and ethical implications for Lutnick’s family business.

Why it matters

The dispute exposes deep fractures within the Trump administration over national security and economic policy. It raises questions about the effectiveness of U.S. export controls on advanced AI chips and the potential for conflicts of interest within the Commerce Department. The outcome could influence future oversight of technology exports and the political standing of key administration figures.

What to watch

Watch for potential testimony from Lutnick before Congress, as demanded by bipartisan senators. Monitor whether Trump decides to dismiss Lutnick or maintains his support. Look for any further action by Commerce on the Megaspeed entity list and any new intelligence reports regarding chip exports to China.