Cantor Fitzgerald’s CEO Howard Lutnick advocates for regulators to treat Bitcoin (BTC) as a commodity comparable to gold and oil. During his appearance on the Fox Business show “Mornings with Maria” on September 27, he expressed concerns over the regulatory landscape surrounding cryptocurrencies.
Regulatory Misunderstandings
Lutnick criticized regulators and lawmakers, stating their lack of understanding hinders constructive oversight in the digital asset space. He commented:
“They [regulators and politicians] don’t know how to [regulate] crypto or digital at all… It’s just platitudes… They have no idea what they are talking about.”
Asserting Bitcoin’s status as a commodity, Lutnick noted the confusion around differentiating it from other cryptocurrencies. He expressed disbelief at the regulators’ inability to grasp the situation:
“Why can’t they understand it? It doesn’t make sense to me.”
Support from the SEC
Recently, US Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterated the agency’s position on Bitcoin being categorized as a commodity. However, Bitcoin continues to lack the comprehensive regulatory recognition afforded to assets like gold and oil.
Cantor Fitzgerald’s Bitcoin Initiatives
In a positive move for cryptocurrency investments, Cantor Fitzgerald unveiled plans for a $2 billion financing service aimed at Bitcoin investors seeking leverage options. Lutnick believes this platform will be instrumental in harnessing Bitcoin’s full potential, bridging the gap between traditional finance and the crypto market.
Traditional Finance’s Interest in Bitcoin
In a video released on September 3, Lutnick highlighted a strong desire among traditional financial institutions to engage in Bitcoin transactions. However, he pointed out that the existing regulatory framework requires banks to hold cash reserves as collateral for their Bitcoin holdings, which significantly impedes their participation in the space.
Future of Bitcoin Custody
Lutnick is optimistic about the future, projecting that banks and other financial entities will be authorized to transact with and custody Bitcoin within the next five years, stating:
“Once we get to this party, up we go.”
Additionally, recent developments show that BNY Mellon has received a regulatory exemption that allows it to create a Bitcoin custody service without adhering to contentious accounting rules, setting the stage for traditional finance to begin challenging the current leaders in the cryptocurrency custody sector, such as Coinbase.
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