US banks sounded a cautious tone on cryptocurrencies at the Reuters NEXT conference in New York this week despite expectations of more investor-friendly regulations under the Donald Trump administration.
Trump had previously promised during his campaign to end Joe Biden’s tough rules on digital currencies.
However, banks have chosen not to rush into the digital asset market because its position is still uncertain.
Goldman Sachs Chief Executive David Solomon said the regulatory framework needs to evolve and everyone is speculating about how the framework will be improved.
He added that the changes will make Wall Street reevaluate popular coins such as Bitcoin and Ethereum.
Under President Joe Biden, bank regulators have made it harder for large lenders to lend to crypto investors and issued accounting guidance that has led them to offer very expensive crypto custody fees.
Meanwhile, Donald Trump is expected to transform the crypto industry towards ambitious goals in expanding digital assets, including repealing SEC accounting guidelines and asking bank regulators to ease scrutiny of the crypto sector.
