Cantor Fitzgerald CEO Howard Lutnick called on regulators to treat Bitcoin (BTC) like gold and oil because it is a commodity.
Lutnick made the statement during an appearance on the Fox Business show “Mornings with Maria” on September 27, where he also criticized regulators and lawmakers for failing to oversee and support the digital assets industry.
According to Lutnick, regulators are unable to properly oversee the sector because they don’t understand the importance of Bitcoin and crypto, or how important it is to “get it right.”
He said:
“She [regulators and politicians] don’t know how [regulate] crypto or digital at all… They are just platitudes… They have no idea what they are talking about.”
Lutnick argued that Bitcoin’s commodity status is crystal clear at this point, while acknowledging that other digital assets and currencies are different from the flagship crypto. However, he further stated that the lack of understanding among regulators baffles him, saying:
“Why can’t they understand? It makes no sense to me.”
US Securities and Exchange Commission (SEC) Chairman Gary Gensler recently reaffirmed that the watchdog considers Bitcoin a commodity. However, the flagship crypto has yet to gain the same regulatory acceptance across the board as gold and oil.
Bullish on Bitcoin
Cantor Fitzgerald recently announced plans to launch a $2 billion financing service for Bitcoin investors looking for leverage options.
According to Lutnick, the new platform will help unlock Bitcoin’s full potential and bring traditional finance closer to crypto.
Moreover, at one video on September 3, Lutnick highlighted that traditional financial firms want to transact with Bitcoin. However, he pointed out that current rules in the US require banks to set aside cash as collateral for the amount of BTC they hold, discouraging custodial efforts.
Nevertheless, he said that banks and other traditional financial institutions will be allowed to trade and hold Bitcoin within five years, claiming:
“Once we get to this party, we’re going upstairs.”
Meanwhile, recent reports revealed that BNY Mellon had been granted a regulatory exemption to create a Bitcoin custody service without being subject to controversial accounting rules, paving the way for TradFi to challenge Coinbase’s dominance in the sector.