US Bankers Remain Cautious On BTC

US bankers remained cautious about Bitcoin (BTC) and other cryptocurrencies when speaking at the Reuters NEXT conference held in New York earlier this week. The cautious tone comes despite the expectation of a crypto-friendly administration under the incoming Trump administration. Trump secured the backing of major players from the crypto ecosystem by promising to be a “crypto” president and end the Biden administration's crackdown on the sector. However, despite the assurances, banks remain cautious about dealing with an inherently volatile asset and market. Goldman Sachs Chief Executive, David Solomon, stated,

“The regulatory framework has to evolve, and everyone’s speculating as to how that regulatory framework will evolve, but it's still unclear. But, for now, our ability to act in these markets is extremely limited.”

Solomon added that if the rules change, Goldman Sachs will evaluate dealing in cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). BNY recently began offering custody of crypto assets held by exchange-traded products. The bank is also investing in an array of digital assets. However, its CEO believes anything new must be done with appropriate guard rails and tested through a few macroeconomic cycles.

During the Biden administration, regulators made it difficult for lenders to hold crypto tokens. They also issued accounting guidance, making it costly for banks to offer crypto custody services. However, that is expected to change once Trump enters the White House, with the crypto industry pushing for several policies to promote the adoption of digital currencies. Trump announced he would make former PayPal executive David Sacks the White House Crypto Czar and nominate pro-crypto attorney Paul Atkins as SEC Chair.

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