Major U.S. bank moves towards retail crypto access as Trump-era policy changes boost digital finance

Morgan Stanley Prepares for Retail Crypto Push

Morgan Stanley is planning to offer cryptocurrency trading on its E*Trade platform, in what would be the most significant move yet by a major U.S. bank to provide everyday investors direct access to digital assets. According to sources familiar with the matter, the initiative is still in early development, with a possible launch set for next year.

The bank is reportedly exploring partnerships with one or more established crypto firms to help build the infrastructure necessary for enabling spot trading of popular cryptocurrencies like Bitcoin and Ether. This would expand Morgan Stanley’s existing crypto services, which currently cater mainly to wealthy clients through ETFs, options, and futures products.

Trump’s Crypto-Friendly Policies Clear the Path

The move follows a major shift in U.S. crypto policy under President Donald Trump. Shortly after taking office, Trump signed an executive order encouraging regulators to support digital finance and protect individual freedoms. On the same day, the Securities and Exchange Commission (SEC) scrapped a set of rules that had made it difficult for crypto firms to work with banks.

Further easing came when the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) dropped their 2023 warnings about crypto-related banking risks. The Bank Policy Institute, which represents major U.S. lenders, welcomed the rollback. Paige Pidano Paridon, its co-head of regulatory affairs, stated that the move allows regulated financial institutions to serve customers more safely and invest in innovation.

A Growing Field of Competitors

Morgan Stanley’s entry into crypto spot trading will place it in direct competition with established players like Coinbase and Robinhood. Robinhood, for instance, generated $626 million from crypto in 2024—roughly 21% of its total revenue. Following Trump’s re-election, the company saw its profits more than double in the first quarter of 2025.

Other major financial institutions are also eyeing the crypto market. Charles Schwab has signalled its intention to launch crypto spot trading once regulations are clarified, while SoFi Technologies is considering re-entering the space after previously exiting in 2023. SoFi CEO Anthony Noto recently said there has been a “fundamental shift” in the U.S. crypto landscape.

Shift in Banking Industry Sentiment

The broader banking industry has begun to soften its stance on crypto. JPMorgan Chase, long led by crypto-sceptic Jamie Dimon, now works with exchanges like Coinbase and has developed its own blockchain-based digital currency, JPM Coin. Dimon, once a vocal critic of Bitcoin, recently commented, “I defend your right to do Bitcoin.”

Morgan Stanley’s former CEO James Gorman was among the first on Wall Street to acknowledge Bitcoin’s potential, calling it “more than just a fad” back in 2017. Though the firm was slow to embrace crypto fully, its latest move suggests a shift towards a more active role in the digital asset space.

As crypto regulations ease and mainstream financial institutions begin to invest in infrastructure, the competitive landscape for digital asset trading is poised for rapid transformation. Morgan Stanley’s involvement could bring greater legitimacy to the market and attract users hesitant to trust crypto-native platforms.