Exploring U.S. Banks Engaging in Cryptocurrency Technologies

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by Giorgi Kostiuk

2 years ago


Amidst ongoing interest in cryptocurrencies among U.S. banks, the World Economic Forum meeting in Davos highlighted the engagement of major financial institutions in this sector. Key discussions focused on Morgan Stanley and Bank of America's plans, as well as the SEC's new crypto task force.

Morgan Stanley's Plans

Morgan Stanley CEO Ted Pick commented at the WEF annual meeting in Davos that the bank was ready to work with financial regulators to explore options for greater involvement in crypto. Pick explained that Morgan Stanley hoped to overcome the obstacle of acting as a crypto transactor as a highly regulated financial institution. The bank is exploring crypto trading options through E*TRADE, providing users exposure to crypto via ETFs and crypto-related stocks.

New Opportunities for Bank of America

Bank of America CEO Brian Moynihan also discussed the willingness of U.S. banks to engage in the crypto sector at the Davos meeting. He highlighted that regulatory clarity would be necessary for major banks to engage as crypto transactors. Moynihan pointed out the potential of crypto becoming a new form of payment alongside debit cards and other payment systems. However, broader regulatory frameworks are still needed.

SEC's Crypto Task Force Creation

On January 21, the U.S. SEC announced the creation of a new crypto task force led by Commissioner Hester Pierce to develop a comprehensive regulatory framework for cryptocurrencies. This decision stemmed from issues with previous regulatory approaches that led to confusion and obstacles for crypto and blockchain innovation. The task force will engage with the commission and the public to draft new, more balanced regulations.

The involvement of major U.S. banks in the crypto market remains a significant topic requiring further discussion and regulation. The Davos meeting emphasized the need for cooperation with regulators and society to achieve the necessary clarity in this domain.

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