David Solomon, CEO of Wall Street investment bank Goldman Sachs, stated at the Reuters Next conference hosted by the well-known foreign media Reuters on December 10 that if U.S. regulations loosen in the future, the company may consider participating in Bitcoin and Ethereum trading.
Currently limited by regulatory restrictions, future assessment of spot trading is possible.
"These technologies are attracting a lot of attention." Solomon pointed out that global interest in the cryptocurrency market continues to rise, mainly because the market expects U.S. regulations to possibly loosen in the future. He emphasized that Goldman Sachs is currently still restricted by regulations and cannot engage in spot trading of Bitcoin and Ethereum, but if the regulatory framework changes, Goldman Sachs will reassess the possibility of entering the market.
As the price of Bitcoin broke the 100K mark in November and set a historical high, it is evident that the demand for cryptocurrencies in the market has significantly increased. As one of the world's top investment institutions, Goldman Sachs is also paying attention to this trend.
Trump's policy impact is an opportunity for regulatory change
U.S. President-elect Trump previously promised not only to loosen regulations but also to establish a Bitcoin strategic reserve and end Choke Point 2.0, which may bring a more favorable regulatory environment for the cryptocurrency industry.
"Choke Point" refers to a plan from the Obama era in 2013 aimed at marginalizing legally operating gun manufacturers and adult entertainment industries, not through legislation but by exerting pressure on the banking sector. Now, the marginalization of the cryptocurrency industry, referred to as Choke Point 2.0, does not prohibit the development of the cryptocurrency industry through legislation, but rather reduces banks' interactions with it, cutting off its cash flow and making survival more difficult.
(The U.S. fully hunts down the cryptocurrency industry, New York Department of Financial Services refutes Choke Point 2.0)
The craze for Bitcoin ETFs and other crypto assets
Since the U.S. Securities and Exchange Commission (SEC) approved spot ETFs for Bitcoin and Ethereum, applications for spot ETFs for other crypto assets like Solana and XRP have also emerged one after another. The market anticipates that regulatory agencies will further loosen regulations in the future, allowing more crypto assets to enter the market.
(Grayscale officially submitted an application for a Solana ETF to the SEC, GSOL is expected to be listed on the New York Stock Exchange)
Goldman Sachs has long been involved in cryptocurrency and will quickly enter the market if regulations loosen.
Despite being restricted by regulations at present, Goldman Sachs established a cryptocurrency trading department as early as 2021 and participated in several blockchain technology tests, such as the interoperability financial blockchain Canton Network designed for institutional assets. Additionally, Goldman Sachs revealed that many of its hedge fund clients are very interested in cryptocurrency-related products.
"Bitcoin is a speculative asset." Solomon admitted that the current market positioning of Bitcoin is still primarily speculative, but the market remains very interested in Bitcoin, and he fully understands the reasons.
If U.S. regulatory policies change, Goldman Sachs is expected to become one of the main institutions for spot trading of Bitcoin and Ethereum. Solomon stated: "If regulations allow, we currently have enough infrastructure to enter the market quickly." Goldman Sachs will continue to monitor changes in the regulatory environment and reassess its cryptocurrency market strategy at the appropriate time.
This article Goldman Sachs CEO: If Trump really loosens U.S. cryptocurrency regulations, consideration will be given to spot trading of Bitcoin and Ethereum first appeared in Chain News ABMedia.
