Morgan Stanley’s CEO, Ted Pick, announced that the banking giant is working closely with United States regulators to explore offering crypto services to its clients. The announcement comes as the industry seeks clearer guidelines and a regulatory structure to incorporate digital assets more effectively into traditional offerings.
During an interview on Tuesday, Pick noted that Morgan Stanley is committed to navigating the regulatory landscape and collaborating with authorities to ensure its crypto offerings align with legal and compliance standards. Meanwhile, the acting head of the U.S Securities and Exchange Commission (SEC) is launching an initiative to create a regulatory framework for the emerging asset class.
“We’ll be working with Treasury and the other regulators to figure out how we can offer that in a safe way,” Pick said.
How Far Can Morgan Stanley Go With Crypto?
While the executive intends to work with the U.S. Treasury, the U.S. regulatory environment for crypto assets has been a topic of ongoing discussion. The U.S. SEC and other agencies are still working to finalize guidelines, particularly with the recent departure of former SEC chair Garry Gensler. Gensler’s resignation is seen as a significant development, particularly for Ripple, entangled in a high-profile lawsuit with the SEC over the regulatory status of Ripple’s XRP coin.
Meanwhile, Morgan Stanley, a powerhouse in wealth management, has consistently led the way in the crypto space, staying ahead of its competitors. In 2021, it became the first major U.S. bank to offer bitcoin funds to its affluent clients, and just last year, it took the initiative to provide bitcoin ETFs. However, under Biden’s administration, banks were restricted from fully diving into the crypto market. While their trading desks could use bitcoin derivatives, they could not hold bitcoin (BTC).
With so much happening around the crypto space, banks have shown interest in accepting crypto. For instance, Bank of America CEO Brian Moynihan expressed openness to adopting crypto earlier this week, provided regulators permit it. He highlighted that it could become another method of retail payments for customers of the second-largest U.S. bank by assets.