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Morgan Stanley CEO Ted Pick says will work with regulators
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Morgan Stanley CEO Ted Pick said Thursday that his bank will be working with U.S. regulators to examine whether it can deepen its involvement in cryptocurrency markets.
Pick was asked about his views on digital currencies under the pro-crypto Trump administration. On Tuesday, the acting head of the Securities and Exchange Commission launched an effort to develop a regulatory framework for the nascent asset class.
“For us, the equation is really around whether we, as a highly regulated financial institution, can act as transactors,” Pick told CNBC’s Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland.
“We’ll be working with Treasury and the other regulators to figure out how we can offer that in a safe way,” Pick said.
Morgan Stanley, a juggernaut in the wealth management industry, has been repeatedly ahead of its peers when it comes to crypto. It was the first major U.S. bank to offer bitcoin funds to its rich clients in 2021, and last year it took the lead on offering bitcoin exchange-traded funds. That’s because the firm’s financial advisors were getting questions from clients about bitcoin exposure, sources told CNBC at the time.
But under the Biden administration, banks were prohibited from getting deep into the asset class; their trading desks dabbled in bitcoin derivatives but couldn’t own the “physical” bitcoin. It’s a point that Goldman Sachs CEO David Solomon reiterated this week.
“At the moment, from a regulatory perspective, we can’t own” bitcoin, Solomon told CNBC’s Sorkin. “If the world changes, we can have a discussion about it,” he said.
‘Escape velocity’
When it comes to bitcoin, the original cryptocurrency that traces its origin to the 2008 financial crisis, its staying power through volatile trading and industry scandals over the years may prove critical, according to Morgan Stanley’s Pick. One bitcoin now trades for more than $100,000.
“The broader question is whether some of this has come of age, whether it’s hit escape velocity,” Pick said. “You know, time is the friend [of crypto]; the longer it trades, perception becomes reality.”
Earlier this week, Bank of America CEO Brian Moynihan also signaled a willingness to embrace crypto if regulators allowed it, saying it would be another form of retail payments for customers of the second-biggest U.S. bank by assets.
“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,” Moynihan said. “We have hundreds of patents on blockchain already, we know how to enter the field.”
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In a recent statement, Morgan Stanley CEO Ted Pick announced that the company is committed to working closely with regulators to ensure compliance and transparency in the financial industry. Pick emphasized the importance of maintaining strong relationships with regulatory bodies to uphold the integrity of the markets and protect investor interests.
Pick stated, “At Morgan Stanley, we take our regulatory obligations very seriously. We will continue to collaborate with regulators to address any concerns and maintain the highest standards of conduct in our business practices.”
The CEO’s remarks come at a time when regulatory scrutiny in the financial sector is increasing, with a focus on issues such as market manipulation, insider trading, and cybersecurity. By proactively engaging with regulators, Morgan Stanley aims to demonstrate its commitment to upholding ethical standards and fostering a culture of compliance within the organization.
As the financial industry continues to evolve, collaboration between firms and regulators will be crucial in ensuring a fair and transparent marketplace for all stakeholders. Morgan Stanley’s pledge to work closely with regulators reflects its dedication to remaining a trusted and responsible player in the financial services sector.
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Morgan Stanley, Ted Pick, CEO, regulators, financial industry, compliance, regulatory oversight, financial services, banking, investment management, market regulations, corporate governance
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