In recent news, David Soloman, the CEO of Goldman Sachs, has made quite the bold prediction regarding the United States government’s regulations on cryptocurrency.
He believes that a ‘big evolution’ is in store, which will change how the government regulates cryptocurrencies (including Bitcoin) in relation to respective financial institutions.
Banks keeping a close eye on things as clients demand more crypto-exposure
There is an increasing demand for more exposure to cryptocurrency and digital assets in the United States. However, the current restrictions regarding financial institutions that have been put in place prevent this from happening. These rules and regulations make it difficult for direct exposure to risky, unpredictable, and volatile asset classes like Bitcoin, for instance. As a result of the regulations, the aforementioned financial institutions may only offer crypto-exposure through custody positions within digital assets like ETFs or securities.
Solomon, however, noted that the world of cryptocurrency is indeed evolving, and this has enabled him to predict that the entire situation surrounding cryptocurrency will experience a volatile change in the future, although he decided against speculating as to what his prediction may actually entail.
Upon elaboration, he did slightly clarify what he meant by stating that a big evolution is en route. As to how this evolution will change, things remain to be seen. However, individuals will have to act within the rules and regulations they find themselves in. Simply put, he emphasized the importance of recognizing the arrival of the imminent evolution whilst simultaneously highlighting the significance of the clients and that serving them should be the priority.
Investment options for Bitcoin and other cryptocurrencies are expected later this year
It had been announced last week that the private wealth management division for Goldman Sachs has now moved much closer towards being able to offer exposure to Bitcoin for larger clients. The clients in question are those with $25 million or higher portfolios, as a ‘full spectrum’ regarding various investment options in numerous cryptocurrencies, including Bitcoin, is expected to roll out in the second quarter of 2021.
In a similar stance to that of Solomon, Jay Clayton (the former chairman of the SEC) had also acknowledged that regulations regarding cryptocurrency are indeed due to big changes. He emphasized that banks, taxation, security accounts, and other relevant financial institutions will likely play a role in the upcoming regulations and that the only question is to what extent. Still, the cryptocurrency community is hopeful that business will not be too adversely affected, as investors wait to see what the government decides on in the near future.
