The cryptocurrency landscape in the United States is witnessing significant shifts as President Trump unveils a series of pro-crypto initiatives. Since 2013, the Securities and Exchange Commission (SEC) has pursued over 200 enforcement actions related to cryptocurrencies, according to Cornerstone Research. However, the tide seems to be turning with Trump's latest appointments and policy directions.
In a move that underscores his crypto-friendly stance, President Trump has nominated several key figures to pivotal positions in his administration. Howard Lutnick, the CEO of Cantor Fitzgerald, has been selected as Secretary of Commerce. Scott Bessent, a seasoned hedge fund manager, is set to lead the Treasury. Moreover, Paul Atkins has been nominated to chair the SEC, signaling a potential shift in regulatory approaches.
Trump's executive order on cryptocurrencies emphasizes "protecting and promoting" the use and development of digital assets. This directive has invigorated Wall Street executives, fostering optimism about the future of cryptocurrencies within the financial sector.
Morgan Stanley broke ground in 2021 by becoming the first major U.S. bank to offer its affluent clients access to bitcoin funds. Bitcoin itself achieved a milestone, with prices soaring to nearly $110,000 on Monday, just before Trump's inauguration. As of late Thursday, Bitcoin was trading around $104,000.
The accounting rule SAB 121, which mandates banks to classify cryptocurrencies as liabilities on their balance sheets, has posed challenges for Wall Street's adoption of digital assets. However, Bank of America CEO Brian Moynihan expressed optimism regarding cryptocurrencies, suggesting they could become "just another form of payment" akin to Visa or Mastercard. Moynihan emphasized that clear regulatory guidelines could pave the way for broader acceptance and integration of crypto within traditional banking systems.
"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 on the transactional side of it." – Moynihan
Meanwhile, Morgan Stanley CEO Ted Pick affirmed the bank's commitment to working with federal regulators to enhance its involvement in cryptocurrency markets. Pick highlighted that the regulatory environment plays a crucial role in determining how financial institutions can engage with digital assets.
"For us, the equation is really around whether we, as a highly regulated financial institution, can act as transactors." – Morgan Stanley CEO Ted Pick
The pro-crypto administration has sparked renewed optimism among bank executives regarding the potential for cryptocurrency adoption. This enthusiasm comes at a time when Bitcoin's performance continues to captivate investors and traders alike.
"The longer it trades, perception becomes reality." – Morgan Stanley CEO Ted Pick