Morgan Stanley Explores Deeper Crypto Involvement Amid Regulatory Talks

DAVOS, Switzerland — Morgan Stanley CEO Ted Pick said Thursday that the bank is exploring ways to deepen its involvement in cryptocurrency markets, pending regulatory approval. Speaking at the World Economic Forum in Davos, Pick emphasized the need for collaboration with U.S. regulators to ensure safe participation in the digital asset space.

“For us, the equation is really around whether we, as a bank, can act as transactors,” Pick told CNBC‘s Andrew Ross Sorkin. “We’ll be working with Treasury and the other regulators to figure out how we can offer that in a safe way.”

Morgan Stanley has been a pioneer among traditional financial institutions in embracing cryptocurrencies. In 2021, it became the first major U.S. bank to offer bitcoin funds to its wealth management clients. Last year, it expanded its crypto offerings, responding to growing client interest in digital assets.

However, under the Biden administration, banks faced restrictions on owning physical bitcoin, limiting their involvement to trading derivatives. Goldman Sachs CEO David Solomon echoed this sentiment earlier in the week, stating, “At the moment, from a regulatory perspective, we can’t own bitcoin. If the world changes, we can have a discussion about it.”

Pick highlighted bitcoin’s resilience as a key factor in its potential longevity. “The broader question is whether some of this has come of age, whether it’s hit escape velocity,” he said. “Time is the friend [of crypto]; the longer it trades, perception becomes reality.”

Bank of America CEO Brian Moynihan also signaled openness to crypto adoption, contingent on regulatory clarity. “If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard,” Moynihan said. “We have hundreds of patents on blockchain already, we know how to enter the field.”

As the cryptocurrency market matures, major financial institutions are positioning themselves to capitalize on its growth, provided regulatory frameworks evolve to accommodate their participation.