TradFi Firms Eager to Transact in Bitcoin, Hindered by Regulatory Hurdles: Cantor Fitzgerald CEO
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Cantor Fitzgerald CEO Howard Lutnick has noted the growing interest from traditional financial companies in Bitcoin, citing regulatory challenges as the main barrier.
In a recent post on X, Lutnick explained that while Bitcoin is becoming an emerging asset class for TradFi, regulatory requirements are preventing full adoption.
Lutnick noted that U.S. banks are hesitant to hold Bitcoin because regulations would force them to set aside an equivalent amount of their own capital, making it impractical.
“If the regulatory environment was favorable, traditional financial firms would jump into Bitcoin without hesitation,” he said.
Over the last five years, #Bitcoin has been an outsider to the tradfi community, and it’s only now dipping its toe into global finance. Cantor will help tradfi bring Bitcoin all the way in. Tradfi wants new asset classes, and $BTC is here to stay. pic.twitter.com/XdMMuw254p
Cantor Fitzgerald, a major player in the financial sector, recently announced plans to launch a Bitcoin financing business, with $2 billion earmarked for lending to bitcoin holders.
The firm, which already manages U.S. Treasury trading for stablecoin issuer Tether, is positioning itself to provide leverage for BTC investors.
“My view is Bitcoin, like gold, should be free to trade everywhere in the world and as the largest wholesaler in the world we are going to do everything in our power to make it so,” Lutnick said in July.
“Bitcoin should trade the same as gold everywhere in the world without exception and without limitation.”
He also
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