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 Trump’s 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 CNBC’s 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 Trump’s 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 Trump’s 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’ Bitcoin

For 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 CNBC’s 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 Changes

Besides Pick and Solomon, other banking leaders, including Bank of America CEO Brian Moynihan, also indicated the bank’s 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 America’s 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.