Morgan Stanley and Charles Schwab eye crypto trading as US regulations ease

Two of Wall Street’s most established financial firms, Morgan Stanley and Charles Schwab, are reportedly preparing to offer access to crypto trading.

Morgan Stanley reportedly plans to roll out spot crypto trading on its E*Trade platform by 2026. To support this integration, the firm is exploring partnerships with crypto-native companies.

While Morgan Stanley already offers crypto ETF exposure to its high-net-worth clients, this new development will expand access to a broader base of retail investors.

On the other hand, Charles Schwab is also reportedly positioning itself for a crypto entry.

This corroborates the firm’s CEO, Rick Wurster’s, recent statement during its earnings call, which suggested that the financial powerhouse is working toward enabling direct spot crypto trading for its users.

He said:

“We’re confident we will be a great destination for investors interested in crypto. Our expectation is that with the changing regulatory environment, we are hopeful and likely to be able to launch direct spot crypto and our goal is to do that in the next 12 months and we’re on a great path to be able to do that.”

Why are these banks moving towards crypto?

The timing of these announcements aligns with a broader regulatory shift in the United States.

Under President Donald Trump’s administration, federal agencies have taken significant steps to lift restrictions on banks interacting with digital assets.

In January, the US Securities and Exchange Commission repealed Staff Accounting Bulletin 121, which had discouraged banks from holding digital assets on their balance sheets.

The US Federal Reserve soon relaxed its rules on crypto partnerships for banks, removing the requirement for prior approval.

In addition, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have issued similar guidance, granting banks more freedom to operate in the crypto space.

These developments are already influencing behavior across the financial sector. Several crypto-native firms have begun efforts to secure banking licenses, while traditional institutions are actively seeking ways to remain competitive in a rapidly changing landscape.

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