Wall Street Banks Shift Stance on Cryptocurrency Under Trump’s Pro-Crypto Agenda
Just days into President Donald Trump’s second administration, Wall Street banks are exhibiting a newfound optimism towards cryptocurrency. The change in tone is largely attributed to Trump’s pro-crypto agenda, which includes an emphasis on “protecting and promoting” the use and development of digital assets.
Morgan Stanley CEO Ted Pick told CNBC that the bank is working with Treasury and other regulators to determine how it can offer cryptocurrency transactions in a safe manner. The bank has been more aggressive than its peers in supporting cryptocurrency, becoming the first major US bank to offer its wealthy clients access to bitcoin funds and allowing its financial advisors to pitch clients on some bitcoin exchange-traded funds.
Bank of America CEO Brian Moynihan echoed a willingness to embrace cryptocurrency as a payment option, saying that clear guidelines could unlock broader adoption. He noted that crypto could become “just another form of payment,” like Visa, Mastercard, or Apple Pay.
The SEC’s decision to rescind the accounting rule, known as SAB 121, which required banks to classify cryptocurrencies as liabilities on their balance sheets, is seen as a significant step forward. The rule had subjected those assets to strict capital requirements, raising the financial and regulatory risks of offering crypto custody services.
The shift in attitude among bank executives is tied to Trump’s pro-crypto agenda, which includes nominations of crypto advocates to critical positions across his administration. Paul Atkins, a commissioner under President George W. Bush, has been nominated to chair the Securities and Exchange Commission, while Howard Lutnick, CEO of Cantor Fitzgerald, has been tapped to lead the Department of Commerce, and Scott Bessent, a hedge fund manager, has been chosen to lead the Treasury Department.
Bitcoin has hit a record high of nearly $110,000 ahead of Trump’s inauguration, leading broader gains in the crypto market. As of mid-day Friday, it was trading at around $106,000.