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Goldman Sachs CEO Says Bank Never Planned to Open Crypto Trading Desk

April 12, 2019


Goldman Sachs CEO Says Bank Never Planned to Open Crypto Trading Desk

Goldman Sachs CEO David Solomon has refuted reports that the bank ever had plans to open a cryptocurrency trading desk. Solomon made these comments before the United States House of Representatives Financial Services Committee on Wednesday during a hearing titled, “Holding Megabanks Accountable: A Review of Global Systematically Important Banks 10 Years After the Financial Crisis.”

Rumors of a Goldman Sachs goes back a couple years. In December 2017, Bloomberg reported that the bank was planning to create crypto by June 2018. But in September 2018, sources told Business Insider that a hold had been placed on the project. And days later, as Cryptos reported, Goldman’s chief financial officer (CFO) Martin Chavez told reporters that the recent report was “fake news,” while also cautioning that excitement about a Goldman trading desk might be premature.

Solomon noted in his comments to the House that Goldman has engaged with clients that are involved in clearing crypto futures, but any plans for a trading desk were untrue:

“The first [Bloomberg article] wasn’t correct. Like others, we are watching and … doing work to try to understand the cryptocurrency market as it develops … but we never had plans to open a cryptocurrency trading desk.”

However, Solomon did not take the possibility of a trading desk off the table going forward:

“We might at some point in time, but there’s no question, when you’re dealing with cryptocurrency, it’s a new area … it is unclear from a regulatory perspective, it’s unclear whether … in the long run, as a currency, those technologies are going to work and be viable.”

During the hearing, Congressman Warren Davidson (R – Ohio) questioned Solomon over the media reports, and noted his belief that the United States is falling behind other countries to “take advantage of this thriving sector [cryptocurrency]” due to regulatory uncertainty.

However, Congress is seeking to clear up this uncertainty as of late, with the reintroduction of the so-called Token Taxonomy Act, which would not only, but exclude cryptocurrency from classification as a security and clear up conflicting state-to-state initiatives.