Wall Street Ready for a Dive: CEOs Respond to Trump’s Ambitious Cryptocurrency Initiatives

In a notable change in sentiment, Wall Street executives expressed new optimism toward the cryptocurrency industry just days later The second administration of President Donald Trump. This shift is largely attributed to the 47th President’s pro-crypto agenda, which represents a stark contrast to his previous skepticism during his first term.

Morgan Stanley CEO calls for increased cryptocurrency transactions

At the World Economic Forum in Davos, Switzerland, Morgan Stanley CEO Ted Beck highlighted the bank’s interest in getting more involved in cryptocurrency transactions. he male“For us, the equation is about whether we, as a highly regulated financial institution, can function as dealers.”

Historically, banks have been cautious about dealing with cryptocurrencies, largely due to regulatory uncertainty. The Securities and Exchange Commission (SEC). Forced More than 200 cryptocurrency-related actions have been taken since 2013, creating panic that has hindered institutional adoption.

However, with President Donald Trump’s new administration signaling a more favorable regulatory climate for digital assets, many executives are reevaluating their positions.

Trump has appointed several cryptocurrency advocates to key roles within his administration. Notable candidates include Paul Atkins for Chairman of the Securities and Exchange Commission, Howard Lutnick for Secretary of Commerce, and hedge fund manager Scott Besent for Treasury.

If his appointment is approved, Bessent will oversee important departments that impact tax policies and compliance for digital asset transactions, potentially paving the way for broader acceptance of digital assets.

Morgan Stanley has already taken steps to engage with cryptocurrencies, becoming the first major US bank to offer its wealthy clients access to Bitcoin funds in 2021. The company has also allowed its financial advisors to promote its recently launched Bitcoin. Exchange-traded funds (Traded Funds).

Beck noted that as Bitcoin becomes more established in mainstream finance, its legitimacy as a financial asset will grow. “The longer the trading period goes on, the more the perception becomes reality,” he commented.

SEC repeals SAB 121, easing regulatory burdens on banks

Although optimistic, Major Roadblocks It remains. An important accounting rule set by the Securities and Exchange Commission in 2022 requires banks to classify cryptocurrencies as liabilities on their balance sheets, imposing strict capital requirements that prevent banks from offering crypto custody services.

Efforts to repeal that rule, known as SAB 121, received bipartisan support in Congress, but were ultimately rejected by then-President Joe Biden, leaving a difficult regulatory landscape for banks.

David Solomon, CEO of Goldman Sachs, acknowledged these hurdles, saying: “Right now, from a regulatory perspective, we can’t own Bitcoin.” However, he expressed his willingness to reconsider the issue if the regulatory framework develops.

In an important development, the SEC recently repealed SAB 121, which may ease some of the burdens on banks looking to transact with digital assets.

SEC Commissioner Hester Peirce, who was specific To lead the newly formed “Crypto Task Force”, he welcomed the decision, which signals a shift towards a more favorable regulatory environment for cryptocurrencies.

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