Morgan Stanley (MS) has added its voice to the growing chorus on Wall Street for better regulation of cryptocurrencies, as the top banks survey the landscape in the wake of Donald Trump’s inauguration.
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Speaking on the sidelines of the World Economic Forum (WEF) in Davos, Switzerland, CEO Ted Pick said the bank will be working with U.S. regulators to deepen its involvement in crypto markets.
It comes after Securities and Exchange Commission (SEC) acting Chair Mark Uyeda earlier this week launched a “crypto task force” aimed at “developing a comprehensive and clear regulatory framework for crypto assets.”
Then on Thursday, President Donald Trump ordered the creation of a cryptocurrency working group tasked with proposing new digital asset regulations. It will also explore the creation of a national cryptocurrency stockpile.
Asked by CNBC about his views on crypto regulation, Pick said MS would work with the U.S. Treasury Department and other regulators to figure out how to offer safe transactions in cryptocurrency.
“For us, the equation is really around whether we, as a highly regulated financial institution, can act as transactors,” he said.
Wall Street Banks Ready to Go on Crypto
Wall Street is adjusting to a sharply different administration in terms of its views on crypto. The moves by the SEC to create a crypto task force is just the start of what is expected to mark a gear-change away from the policies pursued by the Biden White House and previous SEC Chair Gary Gensler, who stymied efforts to create Bitcoin ETFs.
Pick also told CNBC that it was a question of whether crypto had achieved “escape velocity.”
If it has, banks seem ready to act. Also speaking at the WEF, Bank of America (BAC) CEO Brian Moynihan said earlier this week said the industry stands ready to act if regulations change around the transactional side. “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,” he told CNBC from Davos.
Is MS Stock a Good Buy?
Analysts remain cautiously optimistic about MS stock, with a Moderate Buy consensus rating based on five Buys and ten Holds. Over the past year, MS has increased by more than 50%, and the average MS price target of $141.69 implies an upside potential of 2.8 % from current levels.
