Goldman Sachs executive criticises regulators’ actions in the crypto industry

Inconsistent regulatory actions could hinder the development of the cryptocurrency industry, according to Goldman Sachs’s head of the digital assets division, Matthew McDermott. CoinDesk reports, citing a briefing from Global Macro Research.

According to him, some Goldman Sachs clients ‘in a sense are setting an example for other investors’ with their activity in the crypto industry.

‘They remain interested in Bitcoin, but also are paying attention to Ethereum in the context of the entire decentralised finance ecosystem and how this industry could change the financial markets,’ McDermott explained.

The head of the department acknowledged growing demand for cryptocurrencies among institutional investors and asset managers. He added that large players have become more comfortable holding digital assets.

‘Custodial offerings are much safer, and implementation and risk management have improved significantly,’ the executive added.

McDermott said that Goldman Sachs is examining opportunities in the crypto industry for corporate clients and ‘will offer access to digital assets through a fund or structured products.’ He also expressed dissatisfaction with the uncertain ‘regulatory landscape’.

‘It’s not often that we see the emergence of a new asset class,’ McDermott emphasised.

On 22 May, economist Alex Krüger published screenshots allegedly of a Goldman Sachs report in which the bank’s experts recognised cryptocurrencies as an asset class.

Back in May 2020, the bank held an investor presentation titled ‘Cryptocurrencies, including Bitcoin, are not an asset class’.

In January 2021, CoinDesk, citing its own source, reported plans by the bank to enter the cryptocurrency market.

In March, a Goldman Sachs survey showed that 22% of the bank’s clients expect Bitcoin’s price to rise above $100 000 within a year. According to the results, 40% of respondents own cryptocurrencies.

In April, Goldman Sachs chief executive David Solomon predicted a major evolution of the digital assets industry.

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