Morgan Stanley, Goldman Sachs, Other Big US Banks to Work with Crypto as Trump Plans to Make US Global Crypto Hub
With Donald Trump planning to make the United States the global crypto hub, big U.S. banks have signaled interest in embracing the nascent asset class.Banks like Morgan Stanley and Bank of America have indicated their interest in embracing crypto following Trumps inauguration. Earlier this week, these banks expressed their desire to expand their operations into the crypto market. Morgan Stanley to Deepen Crypto Involvement Speaking in an interview yesterday with CNBCs Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland, Morgan Stanley CEO Ted Pick said he plans to collaborate with U.S. authorities on crypto initiatives. According to Pick, this collaboration could allow the bank to explore its deeper involvement in crypto under Trumps administration. Specifically, Pick mentioned that Morgan Stanley will partner with the Treasury Department and other federal agencies to ascertain how it can offer crypto-related services safely. Notably, his concern revolves around whether Morgan Stanley, a regulated financial institution, can act as a crypto-related transactor under Trumps administration. Morgan Stanley is among the top American banks that embraced crypto early. Following growing demand from its clients, the bank offered Bitcoin funds to its wealthy customers in 2021 and subsequently introduced its clients to Bitcoin exchange-traded funds (ETFs) last year.Goldman Sachs Hopes to Own Physical BitcoinFor context, the Biden administration was rather aggressive in its crypto regulation approach. It prohibited banks from deeply getting involved with crypto assets and restricted them from physically owning the emerging asset class. David Solomon, the CEO of Goldman Sachs, highlighted this limitation in a recent interview with CNBCs Sorkin. According to him, the current regulatory framework prohibits banks from owning physical Bitcoin. Interestingly, he declared his willingness to discuss Goldman Sachs potential adoption of Bitcoin if regulatory changes occur. Bank of America Anticipates Widespread Crypto Adoption Among Banks Amid Regulatory ChangesBesides Pick and Solomon, other banking leaders, including Bank of America CEO Brian Moynihan, also indicated the banks interest in embracing cryptos. According to him, if U.S. regulators provided the much-needed regulatory framework for crypto, the nascent asset class could serve as another form of payment for Bank of Americas customers. Moynihan speculated that the banking system might showcase significant interest in crypto provided regulators establish the necessary rules legitimizing its use in business transactions. Trump to Make America Global Hub for Crypto Discussions about banks adopting crypto soared following Trump's reelection. The 47th U.S. President has been clear about his support for the crypto industry, unveiling plans to make the United States the global hub for crypto technologies. He reiterated this plan during his virtual speech at the WEF in Davos, Switzerland. Just a few days after his inauguration, Trump is already making moves to provide the regulatory framework for crypto. Following his speech at WEF, he signed an executive order creating a Presidential Working Group for Digital Asset Markets. This committee will explore the potential creation of a national digital asset reserve and develop a regulatory framework for cryptos. The group is expected to submit a comprehensive report detailing its regulatory and legislative proposal for the crypto industry to the president within 180 days of signing the executive order. If the rules are clear and fair, more global banks may consider embracing crypto and offering services related to the industry.
Text source: The Crypto Basic
