Cantor Fitzgerald CEO Howard Lutnick recently made a bold statement calling on regulators to treat Bitcoin (BTC) as a commodity, similar to gold and oil. Lutnick expressed his views during an appearance on the Fox Business show “Mornings with Maria” on Sept. 27, where he criticized regulators and lawmakers for their lack of supervision and support for the digital asset industry.
In his interview, Lutnick highlighted the regulators’ inability to properly oversee the industry due to their lack of understanding of the significance of Bitcoin and cryptocurrencies. He emphasized the importance of getting the regulation right, stating that regulators and politicians often provide empty promises without a clear understanding of the technology.
Lutnick emphasized that Bitcoin’s status as a commodity is evident, although he acknowledged that other digital assets and currencies may differ from the flagship cryptocurrency. He expressed his confusion over regulators’ failure to grasp the concept, stating that it doesn’t make sense to him why they struggle to understand it.
While the US Securities and Exchange Commission (SEC) Chairman Gary Gensler has confirmed Bitcoin’s status as a commodity, regulatory acceptance for Bitcoin is still not on par with that of gold and oil.
Cantor Fitzgerald recently announced plans to launch a $2 billion financing service for Bitcoin investors seeking leverage options. Lutnick believes that this new platform will help unlock Bitcoin’s full potential and bridge the gap between traditional finance and crypto.
In a video on Sept. 3, Lutnick highlighted the interest of traditional financial institutions in transacting with Bitcoin. However, he pointed out that current regulations in the US require banks to set aside cash as collateral for the amount of Bitcoin they hold, hindering custody efforts.
Despite these challenges, Lutnick is optimistic about the future, predicting that banks and traditional financial institutions will be authorized to transact and custody Bitcoin within the next five years. He believes that once traditional finance fully embraces Bitcoin, the market will experience significant growth.
Recent reports have indicated that BNY Mellon received a regulatory exemption to establish a Bitcoin custody service without being subject to certain accounting rules. This development sets the stage for traditional financial institutions to rival Coinbase in the cryptocurrency custody sector.
Overall, Lutnick’s call for regulators to treat Bitcoin as a commodity reflects the growing acceptance and integration of cryptocurrencies into the traditional financial system. As the industry continues to evolve, it will be essential for regulators to adapt and provide clear guidelines to support the growth of the digital asset market.