David Solomon, CEO of Goldman Sachs, has forecast a "big development" in how the United States government regulates Bitcoin and other cryptocurrencies in relation to financial institutions.

In an interview with CNBC today, Solomon was quizzed on the cyberbanking behemothic's moves to prefer Bitcoin (BTC). The CEO kept his cards close to his chest but conveyed that the depository financial institution is keeping a close eye on digital currencies amid increasing demand for crypto exposure from its clients:

"We continue to think virtually digital currency and the digitization of money in a very proactive way, and in that context, nosotros are engaged with our clients, and we look at all this through the centricity of 'what practise our clients need?.'"

The current U.S. restrictions surrounding financial institutions forbid them from offering direct exposure to volatile and risky nugget classes such as Bitcoin. Due to these regulations, which deem crypto as a high-risk asset class, financial institutions tin but offer exposure to crypto in the course of custody positions in digital assets such as securities or commutation-traded funds.

However, Solomon noted the crypto space is evolving and foresees this state of affairs irresolute over time, but he didn't want to speculate on what that actually entails:

"I call up there volition be a big evolution. As to how this evolves in the coming years, nosotros operate in the rules nosotros have. I'm not gonna speculate on where the rules will go for regulated financial institutions, but nosotros're gonna proceed to observe means to serve our clients equally we move frontward."

The bank appear final calendar week that Goldman's private wealth management partitioning is close to offering Bitcoin exposure to larger clients with portfolios of $25 million or more than. A "full-spectrum" of investment options in Bitcoin and other cryptocurrencies is fix to scroll in Q2 of this year.

Quondam U.S. Securities and Substitution Commission chairman Jay Clayton also noted recently that regulatory surroundings surrounding crypto is due for a shakeup, using similar terminology to Solomon:

"Where digital assets land at the cease of the day […] will be driven in part by regulation — both domestic and international — and I'm speaking every bit a citizen at present that regulation will come in this area both directly and indirectly whether it's through how these are held at banks, security accounts, taxation, and the like. We will see this regulatory environs evolve."

The 2021 Bitcoin bull marketplace saw Goldman Sachs reopen its cryptocurrency trading desk-bound in March after the house originally set it up during the 2017 balderdash run when Bitcoin hit $twenty,000 and then subsequently crashed. The banking company likewise filed for an ETF that includes some Bitcoin exposure on March 26.