Howard Lutnick, CEO of Cantor Fitzgerald, recently highlighted the potential for Bitcoin to integrate into traditional finance (TradFi). In a statement on X, Lutnick expressed that many TradFi companies are eager to engage with Bitcoin as a new asset class but are constrained by stringent U.S. regulatory frameworks. He emphasized Bitcoin’s outsider status within the TradFi community, noting its gradual entry into global finance.

Lutnick explained the current regulatory challenges, stating, “If a bank were to hold your Bitcoin, they would need to set aside an equivalent amount of their own funds, effectively locking that capital.” He believes that with a more supportive regulatory environment, traditional financial institutions would dive headfirst into Bitcoin. The CEO, who also heads a new Bitcoin financing initiative by Cantor Fitzgerald, foresees significant shifts if regulations are adjusted, aligning with the growing crypto-positive sentiment among financial leaders.