Goldman Sachs CEO predicts a ‘big evolution’ in the way bitcoin and other cryptocurrencies are regulated

Goldman Sachs CEO David Solomon.
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Goldman Sachs CEO David Solomon anticipates a "big evolution" in the way the US government regulates digital assets.He said the bank was looking at ways to support client demand to be involved in crypto. Current US regulatory laws are unclear about how financial institutions can treat digital assets.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.Goldman Sachs CEO David Solomon has said he expect a major transformation in how the US government regulates bitcoin and other digital assets.
"I think there’ll be a big evolution as to how this evolves in the coming years," he said on CNBC’s "Squawk Box" on Tuesday.
"I’m not going to speculate on where the rules will go for regulated financial institutions, but we’re going to continue to find ways to serve our clients as we move forward."
His remarks echo former SEC chairman Jay Clayton who recently told CNBC that the crypto regulatory environment is due for a "shake-up."
Solomon said Goldman was proactively thinking about the digitization of money, and keeping client needs and demand in mind.
"There are significant regulatory restrictions around us and us acting as a principle around cryptocurrencies like bitcoin. But we can help clients facilitate custody positions in digital assets," he said.
He added that the bank was focusing on how to support demand to be involved in the space. "That’s the lens that we’re really looking through."
Current US regulations regard cryptocurrencies as a highly volatile asset class, but there are no clear rules on whether they can be treated as securities.
A group of lawmakers last month introduced legislation to clarify digital asset regulation within the country.
Under the proposed legislation, a committee formed of representatives from US regulators will evaluate issues pertaining to investor protection, custody, private key management, and cybersecurity within a year.
Goldman’s global head of digital assets, Mary Rich, told CNBC last week that the bank’s private wealth management division is close to offering bitcoin exposure to clients with portfolios of at least $25 million.
This could happen as soon as the second quarter of 2021, she said.
Read the original article on Business Insider

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