CEO Of Goldman Sachs Predicts “Big Evolution” For BTC Regulations
David Solomon stands as Goldman Sachs’ CEO and has recently given out a very bullish forecast. In Solomon’s eyes, an upcoming “Big revolution” is coming in regard to how the USA regulates cryptocurrencies as a whole, particularly when it comes to financial institutions.
Solomon Expecting Change
This was revealed via a recent interview done with CNBC. In said interview, Solomon was questioned regarding the moves of Goldman Sachs when it comes to Bitcoin adoption. Solomon opted to remain quiet for the most part, but made it clear that the banking giant is keeping a very close eye on cryptocurrencies as a whole, including that of the increase in client demand for these assets.
“There are significant regulatory restrictions around us and us acting as a principle around cryptocurrencies like #bitcoin,” says $GS CEO David Solomon. “As our clients have demand to be involved in this space we can continue to find ways to support our clients.” pic.twitter.com/plRxHqmbsI
— Squawk Box (@SquawkCNBC) April 6, 2021
He went as far as to describe the bank of thinking in a “very proactive way” when it comes to the digital currency and money digitization space. He emphasized the fact that the bank was asking itself what do the clients need in terms of these services.
A New Shakeup Looming In Regulation
Now, it should be noted that US regulations forbid financial institutions from offering direct exposure to risky, volatile asset classes, a description that matches Bitcoin a bit too well for many’s liking. These regulations deem cryptocurrencies as a high-risk asset class, which expressly forbids institutions from offering direct exposure. Instead, they must circumvent this through custody positions within the asset class, such as securities or even ETFs.
Solomon has an idea, however. He’s speculating that the crypto space is at the cusp of a new evolution, one that will change this particular situation over time. Of course, like any other high-grade power figure pulling more strings than he ever wants the public to know, he didn’t speculate on any specific detail about it.
Goldman Sachs Planning Crypto Services
Last week, Goldman Sachs announced that the private wealth management division of the banking giant is very close to offering its larger clients of $25 million-plus portfolios exposure to Bitcoin. Indeed, the bank promised a “full-spectrum” of Bitcoin and cryptocurrency-focused investment options set to roll out with the start of 2021’s second semester.
Jay Clayton stands as the former chair of the SEC, and made a public statement about this matter, as well.
“There are significant regulatory restrictions around us and us acting as a principle around cryptocurrencies like #bitcoin,” says $GS CEO David Solomon. “As our clients have demand to be involved in this space we can continue to find ways to support our clients.” pic.twitter.com/plRxHqmbsI
— Squawk Box (@SquawkCNBC) April 6, 2021
He predicted that the regulatory environment for the crypto space will soon see a shakeup, going along the lines of Solomon’s more recent statement, for the most part.