Morgan Stanley’s crypto subsidiary, E-Trade, is preparing to offer crypto trading, The Information was reported The 2nd of January is a day to celebrate. Two people who are familiar with the plan were cited.
According to the report, the lender’s move is motivated by its anticipation of a more favorable regulatory environment under President-elect Donald Trump’s incoming administration.
E-Trade will need to get approval from the Federal Reserve and other key regulators before it can launch a new service. Its parent company is a bank holding organization, so it falls under the central bank’s oversight.
Morgan Stanley purchased E-Trade by 2020. It had more than 5.2 millions accounts at the time and over $360 billion of assets managed.
Morgan Stanley’s entry into crypto trading would bring considerable capital and legitimacy to the space, potentially encouraging greater participation from individual and institutional investors.
Charles Schwab, one of the biggest publicly-traded brokerages in the US has been a notable example. Interested in expressing your interest? Crypto trading is a growing industry.
Rick Wurster, Schwab’s CEO in November, said that the company would consider this option if conditions on the regulatory front improved. Schwab, like E-Trade would need approval from the Federal Reserve because of its banking activities.
These firms could bring a new wave of entrants to the market, increasing competition. They would also be challenging existing players in the industry and helping bridge the gap between digital and traditional finance.
The US crypto-optimism
This is a sector that has been gaining mainstream attention, especially as regulations are likely to become friendlier.
Trump nominates crypto-friendly names for his team Such as According to the US Securities and Exchange Commission’s new Chairman Paul Atkins the participation of existing institutions can reshape competitive dynamics and attract more capital.
The crypto industry is gaining traction with traditional banks and other players. You can also hope for regulatory movements on Trump’s first day. Expectations include executive orders that will make it easier to access banking services.
The market could also see the introduction of new products related to crypto, which would further increase institutional interest. Eric Balchunas, a Bloomberg ETF analyst and James Seyffart are expecting a Wave of Approval This year, look for new cryptocurrency ETFs.
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