Goldman Sachs Group Inc is getting cold feet and abandoning its idea to start trading cryptocurrency as the publicly traded bank remains spooked by the lack of a regulatory framework for cryptocurrency, Business Insider reports, citing people familiar with the matter.
Executives at Goldman Sachs spent part of the past few weeks deciding that it was too early to get in on the cryptocurrency trade without all of the regulations that would give the bank the type of control it would need to be allowed to trade stocks like Bitcoin, according to Business Insider.
“At this point, we have not reached a conclusion on the scope of our digital asset offering,” Goldman Sachs spokesperson Michael DuVally said to Reuters.
The news caused a number of the cryptocurrency stocks dropping sharply, with Bitcoin dropping almost 5 percent which continued its skid to $6,985 on the Luxembourg-based Bitstamp exchange.
The bank showed it was still expressing interest in cryptocurrencies back in last October, back when then-Chief Executive Officer Lloyd Blankfein tweeted, “still thinking about Bitcoin. No conclusion–not endorsing/rejecting. Know that folks also were skeptical when paper money displaced gold.”
Blankfein’s tweet showed that Goldman had a very different mindset from that of JPMorgan Chase & Co CEO Jamie Dimon, who thinks bitcoin is a “fraud.”
Morgan Stanley CEO James Gorman falls more on the side of the cryptocurrencies, saying that the sector is “more than just a fad.”
Bitcoin is an electronic currency. It’s set up in a way that can keep the identities of people anonymous, which has made it an attractive currency on the black market. It’s also easy to move money quickly. The currency is also particularly different because it doesn’t center around a bank or government.
Bitcoin stock does continue to look attractive to investors, having hit it’s all-time high of $16,000 back in the final month of 2017.
Long Island Iced Tea Corp’s shares went up almost 300 percent last December after the company announced it would become Long Blockchain Corp, joining other United States companies that are trying to incorporate blockchain into their business models.
Regulators across the world are looking to tighten up the market as interest continues increasing.
Last year, the U.S. Securities and Exchange Commission seemed to suggest it may subject some cryptocurrency trading to securities laws.
The Jewish Voice previously reported on cryptocurrency and how it affected Long Island Iced Tea. The publicly traded Hicksville company that had optimistic plans of becoming a profitable bitcoin mining firm backed off of Bitcoin plans last February, as the cryptocurrency market is facing large obstacles forging ahead with its quest to be a world-wide alternative to traditional money.
Long Island Iced Tea Corp, whose business is selling non-alcoholic beverages, announced a giant change in December of last year and saw its shares skyrocket after they announced their focus on bitcoin. Shares rose as much as 289 percent after the announcement and subsequent rebranding as Long Blockchain Corp, Bloomberg reported.
By: Eliot Alfred
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