Goldman Sachs CEO David Solomon issued a stark warning to cryptocurrency enthusiasts hoping to bypass U.S. financial regulations: Get on board with the rules, or get out, CNBC reports.
Solomon has stressed that the future of digital assets in the United States depends on integrating them into a secure legal framework.
A "rules-based" ultimatum
"If there are people who think we are going to operate in this environment without rules, they are probably wrong, and they should move to El Salvador," Solomon told CNBC’s Sara Eisen during a live interview at the event.
Solomon has argued that the stability of the American financial system remains paramount.
"I believe that to operate markets safely and soundly, we need to have a rules-based system," Solomon said. "Our banking system is unique, and it needs to coexist with this technological innovation."
The El Salvador connection
Of course, El Salvador famously became the first country to adopt Bitcoin as legal tender in 2021. The move attracted a wave of crypto expatriates seeking a regulation-light environment.
However, the gamble has had mixed results. El Salvador's government has been purchasing Bitcoin since 2022, but recent market volatility has taken a toll. The value of the nation's Bitcoin holdings has reportedly fallen to approximately $500 million, down from a high of $800 million last year.
Goldman's crypto involvement
The bank first flirted with the sector during the 2017 bull run by setting up a cryptocurrency trading desk, only to shelve those plans.
This skepticism peaked in 2020 when the firm notably declared that cryptocurrencies were "not an asset class."
However, the 2021 institutional wave forced a pivot. This prompted Goldman to restart its trading desk.
Goldman has also spent years developing GS DAP, a proprietary tokenization platform designed to bring traditional assets onto the blockchain.
Vladislav Sopov
Dan Burgin