Goldman Sachs CEO David Soloman has forecast a big evolution in how the U.S. government regulates cryptocurrency.
David Solomon, CEO of Goldman Sachs has forecast a “big evolution” in how the U.S. government regulates Bitcoin and other cryptocurrencies, in relation to financial institutions.
In an interview with CNBC today, Solomon was quizzed on the banking giant’s moves to adopt Bitcoin. The CEO kept his cards close to his chest but conveyed that the bank is keeping a close eye on digital currencies, amid increasing demand for crypto exposure from its clients:
The current U.S. restrictions surrounding financial institutions forbids them from offering direct exposure to volatile and risky asset classes such as Bitcoin. Due to these regulations, which deem crypto as a high-risk asset-class, financial institutions can only offer exposure to crypto in the form of custody positions in digital assets such as securities or ETFs.
However, Solomon noted the crypto space is evolving, and foresees this situation changing over time, but didn’t want to speculate on what that actually entails:
The bank announced last weekth that Goldman’s private wealth management division is close to offering Bitcoin exposure to larger clients with portfolios of $25 million or more. A “full-spectrum” of investment options in Bitcoin and other cryptocurrencies is set to roll in Q2 of this year.
Former SEC chairman Jay Clayton also noted recently that regulatory environment surrounding crypto is due for a shakeup, using similar terminology to Solomon:
The 2021 Bitcoin bull market saw Goldman Sachs reopen its cryptocurrency trading desk in March, after the firm originally set it up during the 2017 bullrun when Bitcoin hit $20,000 and then subsequently crashed. The bank also filed for an ETF that includes some Bitcoin exposure on March 26.