Trump’s crypto plans to make Wall Street Executive Directors get excited about digital assets

Only in days To President Donald Trump Second management, Wall Street sings a different crypto tune.

“For us the equation is indeed about whether we, like a highly regulated financial institutioncan act as transators, ” Morgan Stanley CEO Ted peak said CNBC Thursday at Worldwide economic forum in Davos, Switzerland.

The newly discovered optimism among the increasing number of banking executives who were in Davos this week is related to Trump’s prokippto agenda. Trump, a distinguished crypto skeptic in his first term, inverted on the issue of their campaign in 2024 and began to rely on the money of the crypto industry In his efforts to defeat former Vice President Kamala Harris.

On Thursday the President issued a a comprehensive crypto -order executionEmphasis on the “protection and promotion” of the use and development of digital assets. Banks are reluctant to maintain crypto and allow transactions to this point because of the government position. SEC has filed more than 200 cryptocurrency -related action since 2013. According to Cornerstone ResearchS

“We will work with the Ministry of Finance and other regulators to find out how we can offer this in a safe way,” PIK said.

Trump has nominated numerous crypto defenders in critical positions in his administration. They include Paul Atkins as chairman of the Securities and Exchange Committee, where he was Commissioner with President George W. Bush. Howard Lutnik, Central Executive Officer of Cantor Fitzgerald, is the choice of Trump as a minister of trade, and Hedge Fund manager Scott Bessent was elected to lead the Ministry of Finance.

If confirmed, Essent will monitor the IRS and the Financial Crime Network that play a key role in shaping tax policies and policies to adhere to crypto transactions and set guards to adopt crypto adoption in the United States

The PIC says that Morgan Stanley will work with federal regulators to determine if it is possible to deepen the bank’s connections to the cryptocurrency markets. His company is more aggressive than its Wall Street colleagues.

In 2021Morgan Stanley became the first major US bank to offer its wealthy customers access to bitcoin funds. Last August, it was the first great player on Wall Street to allow their financial advisers Start offering customers to some of the Bitcoin Stock Trade Funds that started early last year. So far, wealth management companies have only facilitated transactions if customers demand an exposure to the new spot crypto funds.

The PIC suggested that the more Bitcoin enters the mainstream, the more it is regarded as a legitimate part of the financial system.

“The longer it is traded, perception becomes a reality,” he said.

America CEO Brian Minejan He expressed his desire to accept crypto, in particular as a payment option, if the regulatory environment changes with the new administration. Speaking in Davos, Moynihan emphasized that clear guidelines could unlock more widely.

“If the rules come in and turn it into a real thing you can actually do business with, you will find that the banking system will have a hard time affecting the transaction side,” Moinean said in Tuesday interview for CNBCS

Moynihan, who manages the second largest assets bank in the United States, noted that crypto could become “just another form of payment”, such as Visa., MasterCard or Apple Payment. However, he avoids discussion of cryptocurrencies as Bitcoin as investment or storage means of value, calling this “separate question”.

Another big obstacle to the acceptance of Wall Street cryptocurrencies is an accounting rule issued by SEC in 2022, which requires banks to classify cryptocurrencies as liabilities in their balances. The rule has submitted these assets to strict capital requirements, which significantly increases the financial and regulatory risks of offering crypto trustees.

Efforts to revoke the rule, known as SAB 121, won two -party support in Congress last year. But then -President Joe Biden It vetoed the proposed legislation, leaving the rule intact and further discouraging banks to accept digital assets. Banks are largely forbidden to expand their crypto offers outside the derivative trade and offer ETF to clients for wealth management.

“At the moment, from a regulatory point of view, we cannot own a bitcoin, Goldman Sachs CEO David Solomon told CNBC in an interview with Davos this week. He said the bank would review the question if the rules change.

Late on Thursday, Sec canceled SAB 121, which potentially opens the door to banks to keep crypto assets without such heavy capital requirements.

“Bye, bye sab 121! It wasn’t fun, “wrote SEC Commissioner Heter Peirce, who Tuesday was appointed to run a new “crypto work group” in a Post on x late on Thursday after the decision.

Bitcoin reached a record of nearly $ 110,000 on Monday before Trump’s office, which led to greater profits in the crypto market. By the middle of the day on Friday, he was trading at about $ 106,000.

– Hugh Son from CNBC has contributed to this report.