Through its E-Trade brokerage platform, Morgan Stanley, one of the world’s largest financial institutions, plans to enable cryptocurrency trading for millions of individual clients. Ordinary investors will have easier access to digital currencies like Ethereum and Bitcoin once the proposal takes effect in 2026.
The plan, first disclosed by Bloomberg, aims to incorporate cryptocurrency trading directly into E-Trade’s existing structure, allowing users to buy, sell, and keep cryptocurrencies alongside stocks, exchange-traded funds (ETFs), and other traditional assets.
The company is engaged in advanced negotiations with leading cryptocurrency companies to handle critical components, such as transaction execution and custody, ensuring the security and compliance of its 5.5 million e-transaction users.
This plan will expand Morgan Stanley’s hesitant embrace of cryptocurrencies, which began in 2021 when it started offering Bitcoin ETFs and futures to high-net-worth clients. In 2024, financial advisors received permission to recommend spot Bitcoin ETFs.
The E-Trade expansion, however, is the company’s first attempt to cater to mainstream retail investors, a group that is becoming increasingly interested in exposure to digital assets.
Changes to the Crypto Regulatory Environment
Since Donald Trump’s election in 2024, cryptocurrency regulations appear to be shifting from harmful to helpful. His administration has prioritized creating an environment that fosters innovation, appointing pro-crypto SEC Chair Paul Atkins, and dismantling enforcement tactics from the Obama and Biden administrations that were hostile to digital assets.
The following significant regulatory turning points have contributed to the favorable climate for Morgan Stanley’s recent action:
- The Federal Reserve and the FDIC withdrew their 2023 cautions that advised banks not to do business with cryptocurrency companies.
- Several cryptocurrency-related proceedings, including well-known lawsuits against exchanges, were halted by the SEC.
- Trump’s 2025 directive, which called on agencies to foster responsible digital asset innovation, removed barriers to institutional involvement.
Bridging the Gap between Digital and Conventional Finance
While Morgan Stanley’s move reflects a broader trend in the market, rivals like JPMorgan and Goldman Sachs have progressively expanded their cryptocurrency services; none of them has yet taken this kind of approach to ordinary investors.
The startup aims to leverage E-Trade’s user-friendly platform to enhance access to Bitcoin by providing spot trading, educational resources, and integrated portfolios.
But problems still exist. JPMorgan CEO Jamie Dimon, who once referred to Bitcoin (BTC) as “a pet rock,” is among the internal critics who caution about the speculative character of the cryptocurrency. The leadership of Morgan Stanley has stressed a gradual approach to reducing this, starting with Bitcoin and Ethereum before exploring altcoins.
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