Well, it seems that the truth is finally out in the open and all the speculations surrounding Goldman Sachs’ involvement in the cryptocurrency arena have been laid to rest. Speaking before the United States House of Representatives Financial Services Committee on Wednesday, Goldman Sachs CEO David Solomon categorically refuted all the claims that the bank ever had any plans of opening a crypto trading desk and all the reports claiming so were incorrect, according to a report by Cointelegraph.
It is important to note here that it was reported in August last year that the leading investment banking firm was considering the option of providing custody for crypto funds. Later, according to a report by the Business Insider, the bank made its stance clear and said, “Such plans are not a priority right now and the bank would rather focus its energy on a custody product for cryptos that would better cater to large institutional clients.”
The speculations about the banking firm entering the cryptocurrency arena were based on some interesting facts, the most important being the decision by the bank to hire seasoned cryptocurrency trader, Justin Schmidt, which sparked off wild speculations.
Several days later, the firm’s chief financial officer, Martin Chavez, told reporters that the speculations doing the rounds were “fake news.”
David Solomon further added, “The first [Bloomberg article] wasn’t correct. Like others, we are watching and […]doing work to try and understand the cryptocurrency market as it develops […] but we never had plans to open a cryptocurrency trading desk.”
But the CEO didn’t rule out the prospects of such a move in the near future. He noted:
“We might at some point in time, but there’s no question when you are dealing with cryptocurrency, it’s a new area. It is unclear from a regulatory perspective. It’s unclear whether in the long run, as currency these technologies are going to work and will be viable.”
Others important names who were present at the hearing included JP Morgan Chase CEO Jamie Dimon and Ohio Republican Congressman Warren Davidson among others.