Morgan Stanley is looking to introduce cryptocurrency trading amid regulatory optimism

Morgan Stanley’s cryptocurrency subsidiary, E-Trade, is preparing to offer cryptocurrency trading, Information reported On January 2, Citing two people familiar with the plans.

According to the report, the lender’s move was motivated by its expectation of a more favorable regulatory environment under the president-elect. Donald Trump The next administration.

However, before launching such a service, e-commerce would need approval from key regulators, including the Federal Reserve. The parent company is a bank holding corporation, so it falls under the supervision of the central bank.

Morgan Stanley acquired E-Trade in 2020. At the time of its acquisition, it had more than 5.2 million accounts and $360 billion in assets under management.

Morgan Stanley’s entry into cryptocurrency trading would bring a significant amount of capital and legitimacy to the space, which could encourage greater participation from individual and institutional investors.

It is worth noting, Charles Schwabthe largest publicly traded brokerage firm in the United States, also has Express interest In cryptocurrency trading.

In November, CEO Rick Wurster indicated that Schwab would explore the possibility if regulatory conditions improved. Like e-commerce, Schwab will need approval from the Federal Reserve because of its banking operations.

If these companies receive the necessary approvals, the cryptocurrency market could see a wave of new entrants and increased competition, challenging established players and bridging the gap between traditional and digital finance.

Optimism about cryptocurrencies in the United States

The potential launch of cryptocurrency trading services by traditional finance giants highlights the prevailing interest in the sector now that regulation has become friendlier.

While Trump nominates crypto-friendly names for his team, like The new head of the US Securities and Exchange Commission Paul AtkinsHowever, the participation of incumbents could reshape the competitive landscape while attracting more capital to the market.

In addition to traditional finance companies joining the cryptocurrency market, there are industry players He hopes For the organizational movements on Trump’s first day. Among the expectations are executive orders to facilitate access to banking services.

Moreover, new cryptocurrency-related products could hit the market, increasing institutional interest. Bloomberg exchange-traded fund (ETF) analysts. Eric Balchunas and James Seyphart Expect a A wave of approvals For new cryptocurrency ETFs this year.

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