Goldman Sachs CEO Advocates for Cryptocurrency Regulation
In a recent statement made at the World Liberty Forum, David Solomon, the CEO of Goldman Sachs, expressed strong support for a legislative framework governing cryptocurrencies. He warned that those in the cryptocurrency sector who believe they can disregard the proposed regulatory bill currently held up in Congress should consider relocating to El Salvador, a suggestion originally attributed to U.S. Treasury Secretary Scott Bessent.
Criticism of Crypto Leaders
Bessent had criticized certain crypto leaders for their refusal to engage with the bill unless it meets their demands, describing them as ‘nihilists’ and ‘recalcitrant actors.’ These remarks specifically pointed to Coinbase and its CEO, Brian Armstrong, who controversially withdrew support from the Senate’s bill last month, stating that the company would prefer no legislation over a poorly constructed one. This withdrawal led to a significant setback for the legislation’s advancement.
Importance of a Structured Regulatory Environment
During his address on Wednesday, Solomon reiterated Bessent’s sentiments, emphasizing that a reliable and structured regulatory environment is essential for the sustainability of the crypto industry.
“It’s crucial that we establish a codified rules-based system,”
he remarked, acknowledging that while it may not be flawless, it is necessary for the sector’s future. He insisted that those thinking the industry could function effectively without such regulations are misinformed.
Event Insights and Personal Investments
Solomon’s remarks came during a discussion at an event hosted by World Liberty Financial, a cryptocurrency company tied to the Trump family. When probed by a CNBC moderator about his presence, he openly explained that he was invited by Alex Witkoff, a family business associate and significant client of Goldman Sachs.
Additionally, Solomon shared insights into his own cryptocurrency investments, revealing that he holds only “very little, but some” Bitcoin, positioning himself mainly as an observer of the digital asset’s developments. The event attracted notable figures from both traditional finance and the cryptocurrency realm, including Binance founder Changpeng Zhao, who recently received a pardon from former President Donald Trump, and representatives from a prominent UAE sheikh who acquired a substantial stake in the Trump family’s crypto enterprise last year. Brian Armstrong is expected to address the forum later in the day.
