Wall Street's New Crypto Hope: Trump's Pro-Crypto Stance

Just days into Donald Trump's second term, Wall Street's attitude towards crypto has done a 180. Morgan Stanley's CEO, Ted Pick, revealed at the World Economic Forum in Davos that the bank is keen to explore crypto transactions if regulations allow. Trump, once a crypto skeptic, has now embraced digital assets, issuing an executive order to promote their development. This shift is exciting for banks like Morgan Stanley, which have been hesitant due to strict government positions and SEC actions against cryptocurrencies. Trump's nominations of crypto advocates, like Paul Atkins for the SEC and Scott Bessent for Treasury, further fuel this optimism. Banks are hoping for guidelines that make crypto a legitimate part of the financial system. However, hurdles remain, such as an accounting rule that classifies cryptocurrencies as liabilities, raising capital requirements. With Trump's pro-crypto stance, though, there's hope that these rules could change, allowing banks to custody crypto assets more easily. Bitcoin's value has soared, reaching nearly $110, 000 ahead of Trump's inauguration.