Cantor Fitzgerald CEO Howard Lutnick has stated that traditional financial (TradFi) companies "want to transact in bitcoin" as a new asset class, but are being held back by the existing requirements of U.S. regulators. Lutnick explained that if a bank were to hold bitcoin, they would have to set aside their own money equal to that amount, which is why they currently do not hold it. However, Lutnick believes that if the regulatory environment was improved, all the traditional financial companies would "go head first into bitcoin".
Lutnick, who was picked by former President Donald Trump to chair his presidential transition team, also revealed that Cantor Fitzgerald owns a "s***load" of bitcoin. The company plans to launch a bitcoin financing business with $2 billion in lending, providing leverage to BTC holders. Cantor Fitzgerald already handles U.S. Treasury trading with stablecoin issuer Tether.
The statement from the Cantor Fitzgerald CEO highlights the growing interest in cryptocurrency from traditional financial institutions, as they seek to capitalize on the potential benefits of this new asset class. However, the current regulatory environment remains a significant barrier, requiring further clarification and guidance from U.S. authorities.
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