Goldman Sachs CEO signals potential Bitcoin trading

Goldman Sachs CEO David Solomon has indicated that the firm may consider trading Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) if U.S. regulations evolve.

During a Reuters Next conference, Solomon was asked about the possibility of Goldman Sachs engaging in "spot Bitcoin trading." He explained that the firm's current participation in cryptocurrency is constrained by existing regulatory frameworks.

"I do think that these technologies are addressing, and they're getting a lot of attention at the moment because there's a view that the regulatory framework is going to evolve as we go forward differently than it seemed like it was evolving under the last administration," Solomon stated.

He acknowledged the uncertainty surrounding how regulations will change in the future.

“If the regulatory structure changes, we would evaluate that, but at the moment we're not permitted to,” Solomon replied when pressed by Reuters U.S. Finance Editor Lananh Nguyen about making markets in Bitcoin or Ethereum.

The potential for regulatory shifts is heightened by promises from U.S. President-elect Donald Trump, who has pledged to support the crypto industry by creating a strategic Bitcoin reserve and ending "Operation Choke Point 2.0."

This term refers to a past initiative aimed at limiting banking services for industries deemed high-risk, including those associated with cryptocurrency.

Bitcoin recently reached new heights, surpassing $100,000 for the first time last week. 

In addition to this price surge, numerous firms have submitted proposals for cryptocurrency exchange-traded funds (ETFs), seeking approval from the U.S. Securities and Exchange Commission (SEC).

Goldman Sachs has previously launched a crypto desk in 2021 and has conducted tests on the Canton Network, which is designed for institutional assets.

“These assets, Bitcoin for example, you know these are speculative assets at the moment. But people are very interested in them. I understand why,” Solomon reiterated, despite his cautious approach, in his view of Bitcoin as a "speculative asset."

At the time of reporting, the Bitcoin price was $97,395.90.