In one of the most bullish news for Bitcoin, Goldman Sachs says that crypto regulations in the U.S are up for a significant evolution. As things stand, big financial institutions are not able to give their clients direct exposure to Bitcoin and other cryptocurrencies. That’s because the current regulations do not allow investors to be exposed to risky assets. As such, exposure has been limited to offering custody services, and Goldman Sachs believes this is about to change.
In a CNBC interview, Goldman Sachs CEO David Solomons stated that a shakeup in regulations is coming. He stated that as things stand, there was ongoing digitization of money and that the bank was actively looking into how to serve client needs best.
"There are significant regulatory restrictions around us and us acting as a principle around cryptocurrencies like #bitcoin," says $GS CEO David Solomon. "As our clients have demand to be involved in this space we can continue to find ways to support our clients." pic.twitter.com/plRxHqmbsI
— Squawk Box (@SquawkCNBC) April 6, 2021
While he didn’t reveal the direction that the regulations would take, he said that he foresaw a major change in the future. Goldman Sachs is already working with the current regulatory framework to give customers the best services possible. It has started giving Bitcoin exposure to clients with asset portfolios of $25 million and above. It expects to roll out much broader crypto exposure in the H2 of the year.
Solomon’s assertions are supported by former SEC Chairman Jay Clayton, who stated that the regulatory environment is up for a significant overhaul. He said that whether the regulatory changes will be direct or indirect, the bottom-line is that change is coming. A better regulatory environment in the U.S would be a big deal for the overall growth of the crypto market.