Goldman Sachs CEO says firm could consider bitcoin, ether trading if US regulations shift

Goldman Sachs CEO David Solomon said his global investment firm would "evaluate" getting into bitcoin and ether if the regulatory winds change in the U.S. 

On Tuesday at a  Reuters Next conference, Solomon was asked when it plans to have "spot bitcoin trading" at Goldman Sachs. Solomon said Goldman Sachs' ability to participate in crypto is limited due to current regulations.

"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 said. 

It is still unclear how exactly rules will evolve, he added. 

Reuters U.S. Finance Editor Lananh Nguyen then asked Solomon if he could "make markets in Bitcoin or Ethereum." 

"If the regulatory structure changes, we would evaluate that, but at the moment we're not permitted to," Solomon said. 

Regulatory winds could shift for crypto following U.S. President-elect Donald Trump promises to the crypto industry. Ahead of elections in November, Trump said he would create a strategic bitcoin reserve and end "Operation Choke Point 2.0."

Some in the crypto industry refer to the phrase "Operation Choke Point 2.0" as a callback to Operation Choke Point, a U.S. Department of Justice initiative from 2013 that looked to limit banking services for industries considered high-risk for fraud and money laundering, including payday lenders and firearm dealers. 

Since November, the price of bitcoin has reached new heights, surpassing a record $100,000 last week. Meanwhile, firms have filed a flurry of crypto exchange-traded fund proposals, hoping for a U.S. Securities and Exchange Commission's sign-off. Firms are now vying for ETFs tracking Solana and XRP after the agency approved spot Ethereum and Bitcoin ETFs this past year. 

Goldman Sachs' crypto endeavors 

Solomon repeated his assertion on Tuesday that bitcoin is a " speculative asset ."

"These assets, bitcoin for example, you know these are speculative assets at the moment," Solomon told Reuters. "But people are very interested in them. I understand why."

Goldman Sachs launched a crypto desk in 2021 and later was among several firms to have completed a series of tests on Canton Network, an interoperable "network designed for institutional assets" created by Digital Asset Holdings. 

Goldman Sachs has also said it sees a resurgence in interest in crypto-related products from its hedge fund clients, according to previous reporting from The Block .