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CEO Goldman Sachs: A big change is coming to regulate Bitcoin


David Solomon, CEO of Goldman Sachs Bank, predicted that a major change in the way the US government regulates digital currencies is coming. It should not be forgotten that a former official and a former member of the US Congress made similar statements last week.

to the Report The Coin Telegraph predicts a “big change” in the way the US government regulates bitcoin and other digital currencies in relation to financial institutions.

He was questioned in an interview with CNBC on Wednesday about the banking giant’s decision to accept bitcoin.

Solomon declined to comment, but said the bank was closely monitoring the market as its customers increased demand for digital currencies. He clarified:

We are still actively thinking about digital currency and digitizing money, and in this context we interact with our customers, and the focus of our view on all this is “what do our customers need?”

Current restrictions on US financial institutions prevent them from entering directly into volatile and risky assets such as bitcoin.

Under these regulations, which value digital currencies as a high-risk asset class, financial institutions can provide access to digital currencies solely as a safeguard for digital assets such as securities or exchange-traded funds (ETFs).

However, Solomon noted that the digital currency space is evolving, and he predicts that this situation will change over time. At the same time, he refrained from speculating about how the rules would change.

Solomon said:

I think there will be a big change. As for what will happen in the coming years, we follow the rules we have. I do not want to speculate on how the rules on licensed financial institutions will change; But as we move forward, we want to find ways to serve our customers.

The bank announced last week that its private wealth management division is on the verge of providing bitcoin services to customers with a portfolio of $ 25 million or more. The full range of options for investing in Bitcoin and other digital currencies is set to be announced in the second quarter of this year.

Jay Clayton, former chairman of the US Securities and Exchange Commission (SEC), recently said that serious changes were to be made to digital currency regulations. “Similar to Solomon,” he said.

The final status of digital assets is to some extent determined by domestic and international regulations, and I now say as a citizen that there will be regulations in this area; Both directly and indirectly through the way they are kept in banks, securities accounts, taxes and the like. We will see the evolution of the regulatory space.

Following the formation of an upward trend in the digital currency market in 2021, Goldman Sachs Bank reopened its digital currency trading table in March. The company initially launched the table when Bitcoin reached $ 20,000 during its 2017 uptrend, but fell shortly afterwards. The bank also filed an application for a tradable fund on March 26 (April 6), part of which is related to Bitcoin.

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