Morgan Stanley Explores Safe Cryptocurrency Services Amid Regulatory Challenges

According to PANews, Morgan Stanley CEO Ted Pick stated at the World Economic Forum in Davos that the bank plans to collaborate with the U.S. Treasury and other regulatory bodies to explore the possibility of safely offering cryptocurrency services. As a highly regulated financial institution, the main concern is whether it can legally engage in cryptocurrency transactions. Morgan Stanley was among the first major U.S. banks to enter the cryptocurrency market, offering Bitcoin funds to wealthy clients in 2021 and planning to launch a Bitcoin ETF in 2024. However, due to regulatory restrictions during the Biden administration, banks are unable to directly hold Bitcoin assets and can only engage in Bitcoin derivatives trading. Pick believes that the long-term viability of cryptocurrencies like Bitcoin and their ability to withstand market volatility may prove their value, with time being a potential ally for cryptocurrency growth. As the Trump administration pushes for a regulatory framework for cryptocurrencies, traditional financial institutions, including Morgan Stanley and Bank of America, may deepen their involvement in the sector.