In this article, Morgan Stanley CEO Ted Pick mentioned that his bank will collaborate with U.S. regulators to explore the possibility of expanding its participation in cryptocurrency markets. Pick was questioned about his stance on digital currencies during the pro-crypto Trump administration. Recently, the acting head of the Securities and Exchange Commission initiated efforts to establish a regulatory framework for this emerging asset class.
Pick, speaking at the World Economic Forum in Davos, Switzerland, shared that the main consideration for them is whether, as a heavily regulated financial institution, they can engage as transactors. He stated that they will coordinate with the Treasury and other regulatory bodies to determine how they can provide this service securely.
Morgan Stanley, a prominent player in the wealth management sector, has been at the forefront compared to its competitors in the realm of cryptocurrency. It was the first major U.S. bank to offer bitcoin funds to affluent clients in 2021 and led the way in providing bitcoin exchange-traded funds last year. This was in response to queries from clients seeking exposure to bitcoin, as per sources cited by CNBC.
Under the Biden administration, banks were restricted from deeply involving themselves in the asset class; although their trading desks engaged in bitcoin derivatives, they were unable to possess the “physical” bitcoin. This sentiment was echoed by Goldman Sachs CEO David Solomon, who mentioned that currently, they are not allowed to own bitcoin from a regulatory standpoint. However, he expressed openness to discussing this if circumstances change.
Regarding bitcoin, the original cryptocurrency originating from the 2008 financial crisis, its endurance through turbulent trading periods and industry controversies over the years could be crucial, according to Morgan Stanley’s Pick. The value of one bitcoin now exceeds $100,000. Pick pondered whether bitcoin has matured and reached a point of irreversible growth, emphasizing that time plays a significant role in shaping perceptions and realities in the crypto space.
Bank of America CEO Brian Moynihan also indicated a readiness to adopt crypto if regulatory permissions were granted, viewing it as an additional avenue for retail payments for customers of the second-largest U.S. bank by assets. Moynihan highlighted the bank’s existing blockchain patents and readiness to enter the field once clear regulations are in place.
