Morgan Stanley Prepares to Launch Crypto Trading on E*Trade Following Fed Policy Shift

Morgan Stanley is advancing plans to introduce cryptocurrency trading on its E*Trade platform, marking the most significant move yet by a major U.S. bank to provide retail investors with direct access to digital assets. The initiative gains momentum as regulatory barriers soften—the Federal Reserve recently rescinded two supervisory letters that had previously discouraged banks from crypto engagement.

The policy change eliminates the requirement for state member banks to notify the Fed in advance of crypto-related activities, integrating such ventures into standard supervisory review instead. While still in early development, the E*Trade crypto service could launch as early as next year, with Morgan Stanley reportedly evaluating partnerships with crypto-native firms to handle technical infrastructure.