Morgan Stanley and Charles Schwab Explore Cryptocurrency Trading as US Regulations Relax

Two prominent financial institutions, Morgan Stanley and Charles Schwab, are making moves to introduce cryptocurrency trading for their clients.

Morgan Stanley aims to implement spot crypto trading via its E*Trade platform by 2026, seeking collaborations with crypto-focused companies to facilitate this initiative.

While the firm currently provides crypto ETF access to affluent clients, this upcoming feature will make crypto trading available to a wider array of individual investors.

Conversely, Charles Schwab is also working on establishing its foothold in the cryptocurrency market.

This aligns with a recent remark from CEO Rick Wurster during an earnings call, indicating the firm’s commitment to enabling direct spot crypto trading for its customers.

He expressed confidence that Schwab would become a premier destination for crypto investors and anticipated launching direct spot trading within the next year.

The timeline of these intentions ties in with a notable shift in the regulatory landscape within the United States.

During the Trump administration, significant actions were taken to ease restrictions on banks engaging with digital currencies.

In January, the Securities and Exchange Commission annulled a bulletin that had previously discouraged banks from including digital assets in their balance sheets.

The Federal Reserve subsequently eased its regulations regarding crypto partnerships, eliminating the need for prior authorization.

Moreover, both the FDIC and the OCC have provided similar clarifications, allowing banks greater flexibility in the cryptocurrency sector.

These changes are beginning to shape the conduct of entities throughout the financial industry. Numerous crypto-focused firms are pursuing banking licenses, while established institutions are actively looking for strategies to adapt in this swiftly evolving environment.