Morgan Stanley CEO Ted Beck said on Thursday that his bank will work with US regulators to examine whether it can deepen its involvement in cryptocurrency markets.
Beck was asked about his views on cryptocurrencies under the pro-crypto Trump administration. On Tuesday, Acting Pres Securities and Exchange Commission Launched efforts to develop a regulatory framework for the emerging asset class.
“For us, the equation is about whether we, as a highly regulated financial institution, can operate as dealers,” Beck told CNBC’s Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland.
“We will be working with the Treasury Department and other regulators to figure out how we can deliver this in a safe way,” Beck said.
Morgan Stanley, a giant force in the wealth management industry, has repeatedly been ahead of its peers when it comes to cryptocurrencies. It was the first major US bank to offer Bitcoin funds to its wealthy clients in 2021, and last year took the lead in offering Bitcoin ETFs. That’s because the company’s financial advisors were receiving questions from clients about exposure to bitcoin, sources told CNBC at the time.
But under the Biden administration, banks have been prevented from delving deeper into the asset class; Their trading desks were involved in Bitcoin derivatives but could not own “physical” Bitcoin. It’s a point that Goldman Sachs CEO David Solomon reiterated this week.
“Right now, from a regulatory perspective, we can’t own ‘bitcoin,'” Solomon told CNBC’s Sorkin. “If the world changes, we can have a discussion about it,” he said.
“escape speed”
When it comes to Bitcoin, the original cryptocurrency whose origins date back to the 2008 financial crisis, it has been able to survive through volatile trade and industry. Scandals Over the years may be crucial, according to Beck Morgan Stanley. One bitcoin now trades for more than $100,000.
“The broader question is whether some of this has reached maturity, whether it has reached escape velocity,” Beck said. “You know, time is a friend [of crypto]; The longer the trading period, the more the perception becomes reality.”
Earlier this week, Bank of America CEO Brian Moynihan has also indicated a willingness to embrace cryptocurrencies if regulators allow it, saying it would be another form of retail payments for customers of the second-largest US bank by assets.
“If the rules come in and make it a real thing that you can actually deal with, the banking system is going to struggle,” Moynihan said. “We have hundreds of patents in the blockchain field already, and we know how to enter this field.”
