TechFlow news, September 4 — According to Coindesk, Howard Lutnick, CEO of U.S. financial services firm Cantor Fitzgerald, said that traditional finance (TradFi) firms want to trade Bitcoin as a new asset class but are constrained by current U.S. regulatory requirements.
Lutnick posted on X: "If banks hold clients’ Bitcoin, they must set aside an equivalent amount of their own capital as 'margin.' That’s why they don’t hold Bitcoin. But if the regulatory environment becomes favorable, you’ll see every TradFi firm rushing into Bitcoin."
As CEO of Cantor Fitzgerald, Lutnick revealed the company holds a "significant" amount of Bitcoin and plans to launch a $2 billion Bitcoin lending business in June this year, offering leverage to Bitcoin holders. The firm is already collaborating with stablecoin issuer Tether on U.S. Treasury transactions.
Previous report: Lutnick was recently appointed by pro-crypto Republican presidential candidate Donald Trump as chair of his presidential transition team.
