Goldman Sachs CEO David Solomon recently hinted at the firm’s readiness to explore crypto markets if regulatory barriers are eased, reflecting Wall Street's cautious interest in the sector. Meanwhile, a prominent pro-crypto lobbying group is campaigning against the renomination of SEC Commissioner Caroline Crenshaw, citing her perceived anti-crypto stance as a roadblock to innovation. Goldman Sachs CEO Hints at Crypto Expansion Amid Shifting US Regulations Goldman Sachs CEO David Solomon revealed that the global investment giant may consider entering the Bitcoin and Ethereum markets if US regulatory conditions shift. Speaking at the Reuters Next conference on Tuesday, Solomon emphasized the constraints imposed by the current regulatory framework, while hinting at potential opportunities should these barriers evolve. During the conference, Solomon was pressed on whether Goldman Sachs plans to introduce spot Bitcoin trading. Solomon said Goldman Sachs' ability to participate in crypto is limited due to current regulations. When asked specifically about the firm’s potential role in making markets for Bitcoin (BTC) or Ethereum (ETH), Solomon was cautious but open-minded. “If the regulatory structure changes, we would evaluate that, but at the moment we're not permitted to,” he explained. The discussion comes at a pivotal time for the crypto industry in the US President-elect Donald Trump has promised a pro-crypto agenda, including the creation of a strategic Bitcoin reserve and an end to ”Operation Choke Point 2.0.” This initiative, referred to by some in the crypto space, is a callback to the 2013 Operation Choke Point, which sought to limit banking services for industries deemed high-risk for fraud and money laundering. Trump’s proposals signal a potential thaw in the regulatory climate for cryptocurrencies. Market optimism has surged following Trump’s pro-crypto rhetoric, with Bitcoin recently hitting an all-time high of $100,000. Additionally, the US Securities and Exchange Commission (SEC) has approved spot Ethereum and Bitcoin ETFs, sparking a flurry of applications for funds tracking Solana (SOL) and XRP. Goldman Sachs has already dabbled in the cryptocurrency market. In 2021, the firm launched a crypto trading desk to cater to rising client demand. More recently, it participated in tests on the Canton Network, an interoperable platform designed for institutional assets developed by Digital Asset Holdings. The firm has also observed a resurgence in interest from hedge fund clients seeking exposure to crypto-related products. However, Solomon maintains a cautious stance, reiterating his view that assets like Bitcoin remain speculative. “These assets, Bitcoin for example, are speculative at the moment,” Solomon said. “But people are very interested in them, and I understand why.” Crypto’s Institutional Momentum Goldman Sachs’ exploration of crypto aligns with a broader institutional pivot toward digital assets. The past year has seen unprecedented developments, including the approval of spot ETFs and rising interest in blockchain technology. These advancements have been driven by increasing recognition of crypto’s potential to transform traditional finance. Yet, challenges remain. Regulatory clarity is a critical hurdle for firms like Goldman Sachs , which must navigate a complex and often restrictive landscape. Despite these barriers, Solomon’s remarks suggest that the firm is poised to act should the regulatory winds shift in favor of digital assets. Solomon’s comments show the growing intersection between Wall Street and the crypto sector. As regulatory conditions evolve, major financial institutions like Goldman Sachs are likely to play an increasingly prominent role in the market. For now, the firm remains in a holding pattern, awaiting clearer guidance from regulators. But the CEO’s willingness to ”evaluate” crypto opportunities signals a potential shift in strategy that could have far-reaching implications for both Goldman Sachs and the broader financial ecosystem. As the crypto industry continues to mature and regulatory frameworks adapt, the role of traditional financial giants in the digital asset market is set to expand. For investors and industry participants, all eyes will be on whether firms like Goldman Sachs fully embrace the crypto revolution. Crypto Advocacy Group Launches Campaign to Block SEC Nominee Caroline Crenshaw Meanwhile, a powerful crypto lobbying organization, the Cedar Innovation Foundation, has launched a digital campaign urging US lawmakers to oppose Caroline Crenshaw's renomination for a second term as a commissioner at the Securities and Exchange Commission (SEC). The campaign emphasizes growing tensions between the cryptocurrency industry and financial regulators amid contentious debates over innovation and market oversight. In a Dec. 9 notice, Cedar revealed a “five-figure, multi-channel” digital campaign targeting members of the Senate Banking Committee. The organization criticized Crenshaw for her perceived anti-crypto stance, claiming she is even more critical of the industry than SEC Chair Gary Gensler, particularly regarding policies like spot Bitcoin ETFs . “Last month, Americans voted for pro-innovation leadership, and this Sherrod Brown bait-and-switch directly defies the will of the voters,” Cedar stated, referring to Democratic Senator Sherrod Brown, chair of the Senate Banking Committee. The Senate Banking Committee is scheduled to vote on Dec. 11 on whether to advance Crenshaw’s nomination to the full Senate. Her term officially expired in June 2024, though SEC commissioners can continue serving for up to 18 months after their terms end. If re-nominated and confirmed, Crenshaw could remain at the SEC until June 2029. The timing of the vote is critical, as Democrats maintain a slim majority in the Senate until Jan. 3, 2025, when the new Congress takes office with Republican control. Cedar's campaign is betting on pro-crypto lawmakers to block her renomination during this window. The crypto industry has frequently criticized Crenshaw for her regulatory stance. Many industry leaders perceive her as a staunch opponent of innovation, particularly in areas like spot Bitcoin ETFs, which have struggled to gain SEC approval despite growing institutional demand. Gensler, often seen as the face of the SEC’s crypto regulation efforts, announced plans to resign on Jan. 20, coinciding with Donald Trump’s return to the presidency. Trump has also indicated he will nominate former SEC commissioner Paul Atkins to replace Gensler, signaling a potential shift in the agency’s approach to crypto regulation. Cedar's campaign is part of a broader strategy to reshape the regulatory landscape for crypto in the United States. The foundation is closely linked to Fairshake, a political action committee (PAC) that spent $140 million supporting pro-crypto candidates during the 2024 elections. Ripple CEO Brad Garlinghouse has confirmed that Fairshake’s funding, backed by the crypto industry, played a decisive role in several key races. Fairshake’s efforts included a $40 million campaign supporting Republican Bernie Moreno, who defeated Sherrod Brown in Ohio’s Senate race. Brown, a vocal critic of the crypto industry, had been a key obstacle for pro-crypto legislation and regulatory reform. While Cedar and Fairshake claim to operate independently, the overlap in their leadership and funding sources has raised questions. Cedar has declined to disclose its donors, though reports suggest ties to other crypto-backed PACs, including HODLpac, which was co-founded by Cedar board member Tyler Whirty. A High-Stakes Battle for Crypto Regulation The Cedar campaign shines the spotlight on the growing power struggle between the crypto industry and traditional regulatory bodies. Crenshaw’s renomination has become a flashpoint, symbolizing broader debates over how the US should approach digital asset regulation. The stakes are high. If confirmed, Crenshaw’s extended term could influence the SEC’s policies on crypto for years to come. Conversely, her rejection would mark a significant victory for the crypto industry and signal a shift in the political tide. As the Senate Banking Committee prepares to vote, the outcome could set the tone for crypto regulation under the new administration. Cedar’s aggressive campaign reflects the crypto industry’s resolve to push back against regulatory frameworks it views as stifling innovation. Meanwhile, Fairshake has already announced plans to influence the 2026 midterm elections, with $103 million in funds available to support pro-crypto candidates. The crypto industry's deep pockets and increasing political clout suggest this battle is far from over. With the SEC leadership poised for significant changes and a divided Congress, the future of crypto regulation in the United States remains uncertain. For now, all eyes are on the Senate Banking Committee and its pivotal decision on Caroline Crenshaw’s fate.
