The CEO of Cantor Fitzgerald implores authorities to acknowledge Bitcoin as a commodity, akin to gold and oil, given its considerable financial growth.
Lutnick believes traditional banks will custody of Bitcoin within five years, once regulatory hurdles are overcome in the U.S.
Lutnick has the idea that authorities categorizing Bitcoin as a commodity, for example, gold and oil, may lead to an increase in value.
Howard Lutnick, CEO of Cantor Fitzgerald, compared Bitcoin to commodities like gold. Among digital assets and currencies, he thinks Bitcoin is special. Lutnick is adamant that regulators' ignorance is preventing Bitcoin from becoming more widely used in traditional finance.
He also brought up the fact that authorities are not entirely aware of the significance of Bitcoin, especially in the US. This misconception therefore makes it more difficult to regulate Bitcoin as a commodity. Regulators are losing out on Bitcoin's potential because they don't understand digital assets, Lutnick expressed his aggravation.
https://twitter.com/BitcoinMagazine/status/1839685119340056817 Barriers to Traditional Finance
In addition, Lutnick talked about the increasing interest that conventional financial institutions are showing in Bitcoin. He did point out that obstacles are being created by the laws as they stand. The requirement for banks to reserve equal sums of cash as collateral makes them reluctant to hold Bitcoin. Traditional banking institutions have not yet completely embraced Bitcoin as a result.
Lutnick is upbeat about the future despite this. Within five years, he projected, banks and other traditional financial institutions would be able to own and transact in Bitcoin after gaining regulatory license. He continued by issuing a dire warning, saying the market would soar in value should the Commodities Futures Trading Commission (CFTC) choose to categorize Bitcoin as a financial instrument.
Cantor Fitzgerald's Audacious Bitcoin Decision
A $2 billion Bitcoin lending business that will provide investors leverage over their cryptocurrency holdings was also launched by Cantor Fitzgerald. This action is thought to be a step toward realizing Bitcoin's full potential. Bitcoin is gaining traction in traditional finance; companies like BNY Mellon have been granted regulatory exemptions to establish Bitcoin custody services.
Lutnick thinks that at some point, Bitcoin will be completely incorporated into the established banking system. Traditional financial institutions will rush into the Bitcoin market and push its value higher if it is recognized as a commodity, much like gold and oil.
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