At the Reuters NEXT conference in New York, leading U.S. bankers expressed measured skepticism about the cryptocurrency market, despite the anticipation of regulatory relief under President-elect Donald Trump’s administration. While Trump has pledged to be a “crypto president” and roll back restrictions on digital assets imposed by the Biden administration, the financial sector remains cautious about diving into the volatile crypto space.
David Solomon, CEO of Goldman Sachs, emphasized the need for regulatory clarity before his firm would consider engaging significantly in cryptocurrencies like Bitcoin or Ethereum. “The regulatory framework has to evolve,” Solomon said, adding that, for now, the firm’s activity in crypto markets is “extremely limited” due to their speculative nature.
BNY Mellon, which recently began offering custody services for cryptocurrencies tied to exchange-traded products, is cautiously exploring the digital asset landscape. Its CEO, Robin Vince, underscored the importance of robust testing through multiple economic cycles before scaling crypto services. “We’ve seen a couple of cycles already in crypto. We’ll have to see how some of these assets evolve,” Vince noted.
The Biden administration had tightened the reins on crypto, making it challenging for banks to hold crypto assets or offer custody services due to stringent accounting rules. Trump’s pro-crypto stance is expected to bring a dramatic shift. He recently announced David Sacks, a former PayPal executive and prominent crypto advocate, as the White House “Crypto Czar.” In addition, Paul Atkins, a crypto-friendly attorney, has been nominated to lead the SEC. These announcements have already bolstered market sentiment, pushing Bitcoin to surpass the $100,000 milestone for the first time.
However, the path to regulatory reform remains uncertain. Key figures like Federal Reserve Vice Chair for Supervision Michael Barr, a skeptic of crypto, plan to serve their terms until 2026, potentially slowing the pace of change. The fallout from the collapse of crypto-related banks like Silvergate and Signature Bank, as well as the high-profile implosion of FTX, continues to loom over the sector. Commodity Futures Trading Commission (CFTC) Commissioner Kristin Johnson cautioned that policymakers risk overlooking the hard lessons learned from these crises.
Even with the prospect of a more favorable regulatory environment, banks are signaling that any expansion into crypto will depend heavily on client demand. Bank of America offers limited exposure to cryptocurrencies through exchange-traded funds but reports only modest interest. Similarly, U.S. Bank noted that affluent young professionals showed some curiosity about digital assets, but the overall demand remains subdued.
While Trump’s administration is poised to champion the widespread adoption of cryptocurrencies, the cautious stance of major U.S. banks reflects ongoing uncertainties about regulation, market stability, and consumer interest.