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Steve Muchoki
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Key Notes
- Morgan Stanley is keen to work with the US Treasury among other agencies to ensure a responsible adoption of digital assets.
- The cryptocurrency market will continue to grow exponentially over the years fueled by institutional investors and clear regulatory frameworks.
Morgan Stanley (NYSE: MS), a top-tier traditional banking institution with over $1.4 trillion in assets under management, continues to monitor the developments in the cryptocurrency market under the Donald Trump administration.
According to Ted Pick, CEO at Morgan Stanley, the bank will be working with the United States regulators to determine whether it can further venture into the crypto market.
The nomination of US Senator Cynthia Lummis as the chair of the Senate Banking Subcommittee on Digital Assets has increased the odds of Congress establishing a comprehensive legal framework for the web3 industry and crypto assets. Furthermore, the Trump administration is keen to ensure that Operation Chokepoint 2.0, which barred banking institutions from dealing with crypto firms, never happens again.
According to Pick, Morgan Stanley will be working closely with different financial regulators and the US Treasury to expedite a seamless adoption of digital assets in the coming years.
“For us, the equation is really about whether we, as a highly regulated financial institution, can act as transactors,” Pick noted.
When asked about the memecoin and altcoin industry, Pick noted that the highly liquid crypto assets, such as TRUMP, will soon become a reality after the investors’ perception changes over time.
Over the years, Morgan Stanley has shown a progressive perception towards the cryptocurrency industry, despite the crackdown during the Biden administration. For instance, in 2021, Morgan Stanley began to offer its wealthy clients, with at least $2 million in assets held at the bank, seamless access to Bitcoin funds.
Notably, Morgan Stanley offered Bitcoin services – from Galaxy Digital, NYDIG, and FS Investments – before the approval of spot BTC ETFs last year. As of August 2024, Morgan Stanley allowed nearly 15k wealth advisors to offer spot BTC ETF services to their clients through BlackRock’s IBIT and Fidelity’s FBTC.
Market Impact of Morgan Stanley Venturing into Crypto Industry
The rising talks of cryptocurrency adoption by financial institutions under the Trump administration could have a profound impact on the nascent industry in the near future. The legitimacy gained by most crypto assets following the ongoing adoption by institutional investors will further fuel the ongoing macro bull market.
Moreover, the injection of new liquidity into the crypto market will attract more speculative traders in the long haul.
Ultimately, more traditional financial institutions will likely follow Morgan Stanley in offering crypto-related services to remain relevant in the long term. With the US government seeking to adopt Bitcoin as a strategic reserve, the adoption of BTC by traditional financial institutions will help reduce its overall circulating supply.
As of this writing, the overall supply of Bitcoin BTC $96 424 24h volatility: 1.4% Market cap: $1.91 T Vol. 24h: $30.63 B on centralized exchanges hovered around 2.18 million.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Managing Editor
Marco T. Lanz
