Finally, Wall Street is warming to crypto, thanks to President Donald Trump’s aggressive push to boost the industry, especially after his January 23 executive order for a national digital asset stock market.
Barely a week into Trump’s second term, January 25 a report CNBC says top financial executives are aligning with his pro-Crackbot policies in a major pivot for an industry that previously held Bitcoin at arm’s length.
Trump’s executive order emphasizes “protecting and promoting” the use and development of cryptocurrencies.
Wall Street executives jump
In Davos, Switzerland, at the World Economic Forum, Morgan Stanley CEO Ted Beck said: “We will work with Treasury and other regulators to figure out how we can deliver this in a safe way.” The bank is known for pushing the boundaries in crypto before most of its peers.
In 2021, Morgan Stanley became the first major US institution to give wealthy clients access to Bitcoin funds. By 2024, it allowed its advisors to design Bitcoin ETFs for clients.
‘Crypto President’ Trump surrounds himself with allied supporters to make sure his agenda sticks. Paul Atkins, former SEC commissioner under George W. Bush, has been nominated to lead the SEC. Howard Lutnick, CEO of Cantor Fitzgerald, has been tapped as Commerce Secretary.
Scott Bessent, a hedge fund manager with a Bitcoin obsession, is Trump’s pick for Treasury Secretary. If confirmed, Scott will oversee the IRS and Financial Crimes Enforcement Network — agencies critical to creating clear tax and compliance policies for crypto.
Trump’s policies address long-standing frustration with Wall Street. One of the main complaints was the SEC’s 2022 accounting rule, known as SAB 121, which forced banks to classify cryptocurrencies as liabilities on their balance sheets.
This rule discouraged banks from offering crypto custody services by imposing strict capital requirements. But as cryptopolitan I mentioned On January 23, the SEC repealed SAB 121, removing one of the biggest roadblocks for financial institutions looking to engage with digital assets.
“Bye, bye SABB 121! It wasn’t fun,” said SEC Commissioner Hester Peirce, who was tapped Tuesday to lead a “crypto task force.”
Bank of America CEO Brian Moynihan, also speaking in Davos, welcomed the changes. “If the rules came along and made it a real thing that you could actually transact with, you would find that the banking system would come hard on the transactional side of it,” he said.
He pointed to Crypto’s potential as a payment system, comparing it to Visa or Apple Pay. However, Moynihan moved away from endorsing crypto as an investment asset, calling that “a separate question.”
Of course, Bitcoin price responded to the optimism. On Monday, it rose to nearly $110,000 — an all-time high — before settling at around $106,000 as of press time.
Banks push for clear rules as adoption grows
Although the SEC’s actions have brought a lot of excitement, Wall Street is still grappling with other regulatory issues. Anti-money laundering (AML) rules remain a sticking point, as inconsistent guidelines make it difficult for banks to serve some industries.
Crypto CEO JPMorgan Chase CEO Jamie Dimon summed up the frustration on a podcast earlier this week: “There needs to be much cleaner lines around what we have to do and what we don’t have to do. We’ve been complaining about “This has been going on for years. We need to fix it.”
Wall Street executives are also pushing for a uniform federal standard to replace the hemostasis of state laws that complicate compliance. The Trump administration is being pressed to address these challenges as part of its broader effort to simplify crypto regulation.
Although on Thursday, Trump criticized JPMorgan Chase and Bank of America, accusing them of denying services to conservative clients. The issue, known as “debanking,” has long been a point of Republican debate.
“We take this issue very seriously,” Bank of America said Friday. “We will engage with the Administration and Congress regarding broad government regulations that sometimes result in requirements to exit relationships.”
The renewed focus on AML rules comes after a 2020 law aimed at overhauling these regulations was reported. Banks continue to push for clearer guidance, arguing that inconsistent rules are forcing them to turn away from some clients and industries for fear of penalties.
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