Ramazan Eles 
Howard Lutnick, CEO of Cantor Fitzgerald, recently shared insights on the challenges banks face regarding Bitcoin (BTC) due to regulatory constraints in the United States.
While Bitcoin has seen a significant rise as a new asset class in recent years, it remains at relatively low adoption levels within traditional finance sectors. Howard Lutnick, CEO of the 70-year-old U.S. banking institution Cantor Fitzgerald, addressed these issues.
In a recent post on X, Lutnick highlighted that banks are indeed interested in Bitcoin and are willing to engage in BTC transactions as a new asset class. However, he pointed out that the current U.S. regulatory environment poses significant barriers to this process.
Lutnick noted that the primary obstacle preventing banks from holding Bitcoin is the stringent regulatory requirements. He explained, “Banks are required to set aside an equivalent amount of their own funds to hold BTC, which essentially traps them in a regulatory ‘prison.’”
He stressed that a more favorable regulatory environment could lead to a substantial increase in traditional finance companies’ investment in Bitcoin. Lutnick also mentioned that his company is committed to helping integrate Bitcoin fully into the traditional finance ecosystem.
“Over the past five years, Bitcoin has been outside the traditional finance community, and it is only now starting to make its entry into the global financial arena,” Lutnick said. “Cantor Fitzgerald is dedicated to facilitating the adoption of Bitcoin by traditional finance to its fullest extent.
Traditional finance wants to embrace Bitcoin as a new asset class and hold BTC, but the regulatory environment remains the biggest hurdle. If a bank were to hold your Bitcoin, they would need to set aside an equal amount of their own funds, which places them in a sort of ‘confinement.’
This is why banks are not holding Bitcoin. However, if the regulatory environment were more supportive, you would see traditional finance companies increasingly moving towards Bitcoin.”
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