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Bitcoin is at the edge of a financial revolution, with institutional adoption being a matter of “when” rather than “if,” according to Howard Lutnick, CEO of Cantor Fitzgerald and the newly confirmed U.S. Commerce Secretary. Speaking candidly about Bitcoin’s growing role in traditional finance, Lutnick emphasized that regulatory barriers are the primary reason banks and major financial institutions have yet to fully embrace the asset.
With the approval of Bitcoin ETFs, the asset has taken its first steps into mainstream finance. However, Lutnick argues that full adoption is still limited by regulatory restrictions.
“Right now, today, if a bank were to hold your Bitcoin, they would have to set aside their own money equal to that amount, in sort of like… jail,” Lutnick explained. “So you’d say, ‘That’s crazy!’ The answer is, that’s why they don’t hold it.”
Banks, brokerage firms, and financial service companies want to transact in Bitcoin, he said, but they need regulators to give them the green light. When that happens, Lutnick believes these institutions will move in “head first.”
“It’s a slow, steady process, but eventually, there’s going to be a [Commodity Futures Trading Commission] chair who says, ‘You know what? Bitcoin is a financial asset, and we’re going to treat it as such.’ And when that happens, you’re going to see Bitcoin move in a very, very strong positive direction.”
Unlike most traditional financial firms still hesitant to enter the crypto space, Cantor Fitzgerald is already making moves. Lutnick announced that the firm is launching a Bitcoin financing business, offering $2 billion in Bitcoin-backed loans at the start, with plans to expand in $2 billion increments.
“Cantor Fitzgerald is here to announce that we are launching a Bitcoin financing business… We will offer leverage to those who own Bitcoin,” he stated.
This move positions Cantor Fitzgerald as a pioneer in Bitcoin’s integration into traditional finance, with Lutnick envisioning the firm as the “sponsor of Bitcoin into traditional finance.”
A key part of Lutnick’s strategy is to push Bitcoin’s classification as a commodity rather than a currency. This distinction, he argues, is crucial to avoiding political resistance.
“The whole Bitcoin nation should just call it a commodity, never a currency. Because if it’s a currency, you’re attacking the politicians of the country, right? You’re trying to replace my currency with yours. But if you say, ‘Hey, hey, hey, I’m just oil, I’m just gold, I’m just a commodity — leave me be,’ then they’ll leave you be.”
By aligning Bitcoin with commodities like gold and oil, Lutnick believes Bitcoin can achieve broader acceptance without government pushback.
“Bitcoin, like gold, should be free to trade everywhere in the world. And as the largest wholesaler in the world, we are going to do everything in our power to make it so.”
Lutnick is putting his money where his mouth is. He openly confirmed that both he and Cantor Fitzgerald own large amounts of Bitcoin.
“Do I own Bitcoin? Of course, I do,” he said. “Does Cantor Fitzgerald own Bitcoin? A shitload of Bitcoin.”
His confidence in Bitcoin’s long-term value is unwavering, stating that every time Bitcoin’s price dips, he’ll be a buyer.
“Bitcoin will be financeable. Bitcoin will be way, way, way higher. Sometimes lower. You just have to have faith.”
Lutnick believes Cantor Fitzgerald’s actions will set off a domino effect that forces other financial giants to follow suit.
“Basically, what you’re going to see is Cantor Fitzgerald is going to be the sponsor of Bitcoin into traditional finance. We will be the leader of it. And I’ll pull out this podcast in years to come and say, ‘See, I told you!’ Because no one’s going to remember, of course. But after we do it and show people how to do it right, they’ll all copy.”
As Bitcoin gains institutional backing, its adoption and value will accelerate.
“As it becomes more accepted, it will become more valuable.”
Howard Lutnick’s vision for Bitcoin is clear: it will be widely adopted, fully financeable, and a staple of the global financial system. While regulatory barriers remain, he believes the tipping point is coming, and when it does, Bitcoin’s valuation and acceptance will soar.
The big question remains: Will regulators move quickly enough to allow banks and institutions to fully embrace Bitcoin in the next decade?
Watch it here. https://youtu.be/HNKEmWCO2pI?si=OUzAu9acKyxmxEL7
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English (US) ·