David Solomon, CEO of Goldman Sachs, has forecast a “big evolution” in how the United States 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 (BTC). 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:
“We continue to think about digital currency and the digitization of money in a very proactive way, and in that context, we are engaged with our clients, and we look at all this through the centricity of ‘what do our clients need?.’”
The current U.S. restrictions surrounding financial institutions forbid 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 exchange-traded funds.
However, Solomon noted the crypto space is evolving and foresees this situation changing over time, but he didn’t want to speculate on what that actually entails:
“I think there will be a big evolution. As to how this evolves in the coming years, we operate in the rules we have. I’m not gonna speculate on where the rules will go for regulated financial institutions, but we’re gonna continue to find ways to serve our clients…