Howard Lutnick, the billionaire CEO of Cantor Fitzgerald and a key figure in the incoming administration, is reportedly discussing receiving backing from Tether for a multi-billion dollar lending program to lend dollars to clients who use BTC as collateral.

The U.S. Securities and Exchange Commission (SEC) has received a record $8.2 billion for penalties and fines from its enforcement actions in the 2024 fiscal year, its highest amount in history, with most coming from the Terraform Labs settlement.

ZA Bank, Hong Kong’s largest virtual bank, has expanded its services to allow retail users to buy and sell Bitcoin and Ethereum using fiat currency. To access the new service, Hong Kong residents will need to have an account with the bank and undergo a risk assessment.

Top stories in the Crypto Roundup today:

• Cantor Fitzgerald and Tether Eye $2 Billion BTC-Collateralized Lending Program
• SEC Secures Record $8.2 Billion in Financial Remedies in Fiscal 2024
• Hong Kong’s ZA Bank Launches Direct Bitcoin and Ether Trading Service

Cantor Fitzgerald and Tether Eye $2 Billion BTC-Collateralized Lending Program

Howard Lutnick, the billionaire CEO of Cantor Fitzgerald and a key figure in the incoming administration, is reportedly discussing receiving backing from Tether for a multi-billion dollar lending program to lend dollars to clients who use BTC as collateral.

The program is set to start at around $2 billion, but it’s expected to grow into the tens of billions.

The two companies already have a substantial business relationship. Tether relies on Cantor’s custody services to safeguard billions of dollars in US Treasuries that support the value of its USDT stablecoin. This arrangement generates tens of millions of dollars annually for Cantor.

As Lutnick prepares to transition to a role in the incoming Trump administration, in which he was picked to run the Commerce Department, he is working to ensure a smooth handover of the firm’s relationship with Tether to his colleagues.

His firm has reportedly invested as much as $600 million in Tether, with the amount equating to an ownership interest of about 5%.

SEC Secures Record $8.2 Billion in Financial Remedies in Fiscal 2024

The U.S. Securities and Exchange Commission (SEC) has received a record $8.2 billion for penalties and fines from its enforcement actions in the 2024 fiscal year, its highest amount in history, with most coming from the Terraform Labs settlement.

The record obtained in financial remedies came during a year in which the agency filed 583 enforcement actions, a 26% decrease from the prior year. Most of the financial remedies came from the settlement with collapsed crypto firm Terraform Labs, around $4.5 billion.

Without Terraform Labs’ settlement, the SEC would have brought in $3.72 billion, which would make it the regulator’s worst year for financial remedies since 2013. Notably, it isn’t expected to collect the entire $4.5 billion, as it agreed to be paid after Terraform satisfies crypto loss claims.

In the fiscal year, the SEC also imposed significant penalties on individuals, including barring 124 individuals from serving as officers and directors of public companies.

Hong Kong’s ZA Bank Launches Direct Bitcoin and Ether Trading Service

ZA Bank, Hong Kong’s largest virtual bank, has expanded its services to allow retail users to buy and sell Bitcoin and Ethereum using fiat currency. To access the new service, Hong Kong residents will need to have an account with the bank and undergo a risk assessment.

The bank has partnered with cryptocurrency exchange HashKey to comply with regulatory requirements and facilitate the integration of traditional banking with crypto.

Calvin Ng, alternate chief executive of ZA Bank, said that the “rise of cryptocurrency presents investors with more diverse asset allocation opportunities.” The bank had previously conducted a sandbox trial for its virtual asset trading service in October, setting the stage for this latest development.

In June 2023, Hong Kong opened applications for cryptocurrency exchange licenses, with retail cryptocurrency trading only officially beginning in August of this year. ZA Bank was licensed by the Hong Kong Monetary Authority in 2019 and became the country’s first and largest digital bank.

State of the Crypto by Top Tier Exchange Volume

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