While Bitcoin adoption as a new asset class has increased significantly in recent years, it still remains low in the traditional finance sector.
Howard Lutnick, CEO of the 70-year-old US bank Cantor Fitzgerald, spoke about banks’ adoption of BTC.
Sharing from the X account, Howard Lutnick stated that banks are interested in Bitcoin and are willing to enter into BTC transactions as a new asset class, but are blocked by the current US regulatory environment.
The famous CEO stated that the regulatory environment in the US is the primary reason why banks do not hold Bitcoin, “because in order to hold BTC, they have to separate the same amount of their own money, which kind of puts that bank in jail.”
Emphasizing that a positive regulatory environment will lead to a significant increase in traditional finance companies investing in Bitcoin, Lutnick said that his company will help the traditional finance (TradFi) ecosystem to fully integrate Bitcoin.
“For the last five years, Bitcoin has been outside the trading community and is just entering the global financial world.
Cantor Fitzgerald will help Tradfi bring Bitcoin adoption to its full potential.
Tradfi wants to consider Bitcoin and hold BTC as a new asset class, but the regulatory environment is the biggest obstacle in its path.
If a bank were to hold your Bitcoin, they would have to set aside an amount of their own money equal to that amount, in a sort of ‘prison’.
That’s why they’re not holding Bitcoin. But if the regulatory environment was good, you’d see all the traditional financial companies moving towards Bitcoin.”
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
— Howard Lutnick (@howardlutnick) September 3, 2024
*This is not investment advice.
