Morgan Stanley to add crypto trading for E*Trade clients
By: thepaypers|2025/05/05 19:45:01
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According to Yahoo citing individuals familiar with the matter, the launch is targeted for 2025 and would allow customers to trade major cryptocurrencies such as Bitcoin and Ether. Discussions within the bank about expanding into digital assets reportedly gained traction in late 2024. E*Trade already offers exposure to cryptocurrencies through exchange-traded funds, ETF options, and futures products. According to company officials, adding spot trading is now seen as the logical progression. The bank is considering working with one or more established cryptocurrency firms to facilitate the offering, although it has not publicly commented on its strategy. Industry players react to changing regulatory landscape The initiative follows recent shifts in the US regulatory environment around digital assets. Since the beginning of Donald Trump's second presidential term, federal agencies have withdrawn several measures that had restricted banks’ involvement with the crypto sector. In the first days of his presidency, an executive order was signed to encourage the development of digital assets and financial technology. Concurrently, the Securities and Exchange Commission rescinded guidance that had previously discouraged banks from partnering with crypto firms. Furthermore, the Federal Reserve and the Federal Deposit Insurance Corporation rolled back their 2023 guidance on crypto-related risks, further reducing regulatory constraints. The Bank Policy Institute, which represents large US financial institutions, supported the changes, suggesting they provide greater clarity for banks to engage in digital asset services. Other financial firms are also adjusting their strategies in light of the new regulatory outlook. A representative from Charles Schwab Corp. stated that the company could roll out its own spot cryptocurrency trading service later this year. Schwab had previously indicated it would launch such services once regulatory conditions became more favourable.
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