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The existing regulatory framework around cryptocurrency restricts Goldman Sachs from implementing its projects covering digital currencies, said the bank’s CEO, David Solomon. He added that customer demand has skyrocketed in recent months, which is the reason behind GS’s proactive crypto approach.
US Rules Bring Challenges for Institutions Engaging with BTC
Founded in 1869, Goldman Sachs is a giant US multinational investment bank that has displayed a somewhat controversial approach towards bitcoin and the entire cryptocurrency space.
Its previous actions included launching a cryptocurrency trading desk in 2017, halting it shortly after, and restarting it earlier this year. Before reactivating the initiative, though, Goldman held a conference call in which it claimed that digital assets are not an asset class.
However, the organization’s opinion on the industry has swung once again. More recent reports informed that Goldman planned to file for a Bitcoin ETF and to release an investment infrastructure to wealth management clients.
The bank’s CEO, David Solomon, recently appeared on Squawk Box, where he addressed the demand for the primary cryptocurrency from institutional clients. However, he noted that the current legislation raises issues for heavily regulated establishments, such as Goldman, to interact with digital assets.
“There are significant regulatory restrictions around us and us acting as a principle around cryptocurrencies like bitcoin.”
Demand for BTC Rises at Goldman
Despite the challenges Goldman faces, Solomon reassured the customers that they would continue to receive exposure to bitcoin as long as the interest remains high.
“As our clients have demand to be involved in this space, we can continue to find ways to support clients.”
He believes that the cryptocurrency space continues to evolve, shown by the number of banking establishments that have also come onboard.
As previously reported, several US-based banks have announced cryptocurrency-related endeavors since the start of the year. Perhaps the first major one was the country’s oldest bank – BNY Mellon. It started bitcoin custodial services for its institutional customers.
JPMorgan Chase & Co reports weekly on bitcoin’s progress with compelling arguments whether or not the asset could replace gold. Morgan Stanley took it up a notch and, in the span of a few months, enabled its clients to have BTC exposure through three funds and filed to buy bitcoin for a dozen of its funds.
Featured Image Courtesy of BBC
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