News

• Howard Lutnick says banks want to transact in BTC as a new asset class but are being held back the existing requirements of U.S. regulators.
• "That's why they don't hold it. But if the regulatory environment was good, you will see all the traditional financial companies go head first into bitcoin," he said.

Cantor Fitzgerald CEO Howard Lutnick has said 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 said in an X post on Tuesday that bitcoin (BTC) was an "outsider to the TradFi community [that's] only now dipping its toe into global finance."

"If a bank were to hold your bitcoin, they would have to set aside their own money equal to that amount, sort of 'in jail'. That's why they don't hold it. But if the regulatory environment was good, you will see all the traditional financial companies go head first into bitcoin," Lutnick said.

As well as being CEO of Cantor Fitzgerald, which unveiled its plans to open a bitcoin financing business in June , Lutnick was also picked by the pro-crypto Republican candidate Donald Trump to chair his presidential transition team .

Cantor Fitzgerald , which owns a "s***load" of bitcoin, according to Lutnick, plans to launch its bitcoin financing business with $2 billion in lending, providing leverage to BTC holders. It already handles U.S. Treasury trading with stablecoin issuer Tether.

Read More: Trump's New Crypto Business to Offer Access to 'High-Yield' Investments, Website Says