Goldman Sachs Refuses To Dive Into Bitcoin Cs If US Government Doesn't Update Crypto Regulations

JAKARTA - Bitcoin has become a prima donna among institutional investors including BlackRock. However, not all companies want to simply jump into digital assets unless they get the green light first from the government like Goldman Sachs did.

According to Goldman Sachs CEO David Solomon, the global investment company will not enter the crypto market without regulatory permission. In an interview at the Reuters NEXT conference, Solomon confirmed that regulations in the United States need to be updated so Goldman Sachs can own and trade crypto assets.

"That's a question you have to ask the regulator. Currently, as banking institutions are regulated, we are not allowed to have cryptocurrencies like Bitcoin as the main asset. We advise clients regarding this technology and will continue to do so, but our ability to act is very limited on a regulatory basis," he said, quoted by Decrypt.

This statement comes amid growing interest in crypto-based financial products. An example is the Bitcoin ETF BlackRock, which now exceeds their gold ETF even though it has just been launched.

The crypto market is also projected to soar after Donald Trump's election victory. The elected president promised policies that support crypto asset ownership and industrial growth. He appointed Scott Bessent and Paul Atkins, crypto supporters, as Finance Minister and SEC Chair. This move is considered a signal of changing government policies towards digital assets.

Even so, Goldman Sachs remains cautious and prioritizes regulatory compliance while providing guidance to clients interested in blockchain and crypto assets. This attitude shows the challenges of large financial institutions in balancing market needs with regulatory restrictions.

With the new policy to be implemented, the role of institutions such as Goldman Sachs in the crypto sector is expected to increase, bring legitimacy and growth to this industry, especially in Uncle Sam's country.