The head of Cantor Fitzgerald spoke about the desire of large companies to use Bitcoin. What prevents this from happening?
Contrary to the short-term drop in value, the demand for Bitcoin may be higher than most people think. This is the opinion shared by Cantor Fitzgerald CEO Howard Lutnick. He published a curious post on Twitter regarding the intentions of large companies in traditional finance. According to Lutnick, many of them already want to conduct transactions in Bitcoin, but restrictions from US regulators act as a barrier.
The crypto industry has a "special" relationship with US regulators. In particular, the Securities and Exchange Commission (SEC) is known for its numerous court cases against industry giants like Binance, Coinbase and other similar companies.
And its chairman Gary Gensler openly calls any cryptocurrency except Bitcoin unregistered securities. The previous day, similar accusations were also levelled at all NFT tokens traded on the OpenSea platform.
Securities Commission Chairman Gary Gensler
The latest example of claims against cryptocurrency companies became known last night. Then the U.S. Commodity Futures Trading Commission (CFTC) reported on claims against the developers of the decentralised exchange Uniswap, which allegedly provided conditions for “illegal trading in derivatives on digital assets”.
By then, however, the matter had been settled. Uniswap representatives paid a fine of $175,000 and pledged not to violate the provisions of the Commodity Exchange Law in the future.
Hayden Adams, creator of the decentralised exchange Uniswap
What is happening somehow increases the chances of Donald Trump’s victory in the upcoming US presidential election. Still, he has repeatedly promised to ensure that an adequate crypto regulatory framework is in place if he wins, as well as firing SEC Chairman Gary Gensler on the first day of his new tenure.
What is the real demand for Bitcoin
On his page, Lutnick posted a video of the address. The video was complemented by the following caption, the contents of which are quoted by Coindesk.
Bitcoin has been an outsider to traditional finance for the past five years, and is only now taking a deeper dive into it. Cantor will help companies utilise all of BTC to its full potential. Traditional finance needs new asset classes, and BTC is going nowhere.
Cantor Fitzgerald CEO Howard Lutnick
In the video itself, the head of Cantor Fitzgerald said the following.
If the bank held your bitcoins, they would have to set aside their own money to the extent of that amount as a sort of back-up. That’s why they don’t hold it. But if the regulatory environment is good, you’ll see all the traditional financial companies go headfirst into Bitcoin.
Howard has previously supported the niche of digital assets and their popularisation. In particular, in April Lutnick said the prospect of increased demand for the dollar in the event of greater adoption of stablecoins, well, he called himself a fan of such tokens with proper collateral from companies like Tether and Circle. Read more about his point of view in a separate article.
Cantor Fitzgerald executive Howard Lutnick on CNBC’s show
In addition to being the CEO of Cantor Fitzgerald, Lutnick has also been selected by Republican presidential candidate Donald Trump as chairman of his transition team.
Well, having prominent entrepreneurs with similar views towards cryptocurrencies will surely lead to positive results for the coin industry if Trump wins.
Hourly chart of the Bitcoin BTC rate on the Binance exchange
As Lutnick notes, the company itself owns a “huge amount” of bitcoins. Also in the future, its management plans to launch a BTC financing business, providing coin holders with loans totalling $2 billion.
Cantor Fitzgerald works closely with Tether, the largest issuer of a stablecoin called USDT. In January 2024, Lutnick confirmed the existence of reserves with the giant. At that time, Cantor representatives familiarised themselves with “part of the balance sheet of Tether Holdings Ltd” and were able to confirm the relevance of the relevant data.
According to The Block’s sources, holders of the largest cryptocurrencies by capitalisation will soon have more promising opportunities to open transactions.
All because of the jump in volatility, i.e. the volatility of the digital asset market, predicted by QCP Capital analysts. Here is a rejoinder on the subject.
The Volatility Movement Indicator (VMI) gave a signal this morning for the largest cryptocurrencies by capitalisation, both Bitcoin and Etherium. The market is entering a period of heightened volatility.
VMI indicator rising
Analyst Vetle Lunde of K33 Research pointed to the anticipation of the upcoming US presidential election as the reason for the increase in volatility in crypto.
The market continues to build increased volatility into asset prices for the next few months related to the US election.
The options market is now showing that investors are cautious about short-term price fluctuations, but remain optimistic about Bitcoin in the medium term. Despite the pessimistic outlook, Lunde sees an opportunity to buy into the September drawdown in the crypto before the current bullrun continues, which could begin in October.
Howard Lutnick's comments emphasise the importance of having up-to-date cryptocurrency regulations. If the U.S. had them in place, major traditional finance players would already be interacting with Bitcoin, thereby positively impacting its reputation. And this once again reminds us of the importance of Donald Trump's victory in the upcoming US presidential election. Still, his opponent Kamala Harris is the current Vice President of the United States and is probably happy with the policy chosen by the Biden administration in relation to the coin and token market.
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