Expectations for Trump's Second Term... Wall Street Turns to Cryptocurrency

'Pro-Cryptocurrency' Trump Second Term Administration

Growing Interest from Wall Street, Including Goldman Sachs and Morgan Stanley

"Institutional Entry to Spur Cryptocurrency Market Growth"

With the inauguration of U.S. President-elect Donald Trump just around the corner, there is a noticeable shift in how Wall Street, the economic hub of the U.S., is approaching cryptocurrencies. This change is influenced by Trump's pro-cryptocurrency policies, which he has advocated since his candidacy, branding himself as America's first 'Cryptocurrency President.'

In fact, after his election victory, Trump has brought in a large number of individuals to his second-term administration who will support his pro-cryptocurrency policies. Notably, Gary Gensler, the former SEC chairman criticized for excessive regulation on cryptocurrencies, has stepped down, and Paul Atkins, a former SEC commissioner with a pro-cryptocurrency stance, has been nominated as the next chairman.

Additionally, with most SEC commissioners expected to be Trump's Republican appointees, there seems to be little obstacle in implementing Atkins' cryptocurrency policies. Furthermore, David Sacks, former COO of PayPal, has been nominated for the newly created position of 'Chief of Cryptocurrency and Artificial Intelligence (AI)' in Trump's second-term administration.

Moreover, Trump is expected to issue an executive order to implement cryptocurrency policies on his first day in office. On the 17th (local time), the New York Times reported, citing multiple sources, that "President-elect Trump has conveyed his views on cryptocurrency-related executive orders to David Sacks, the White House advisor for cryptocurrency and AI." According to sources, these views include one of Trump's key pledges, the 'U.S. Bitcoin Strategy Reserve.'

Goldman Sachs and Morgan Stanley Considering Cryptocurrency Trading Services

In this context, financial institutions on Wall Street, which had previously been passive towards cryptocurrencies, are adopting a different stance. Last year, Barclays and Citigroup led the issuance of convertible bonds for MicroStrategy, the largest holder of Bitcoin, multiple times, and Goldman Sachs raised funds for Applied Digital, a provider of Bitcoin mining infrastructure and AI data center operations.

Furthermore, last month, Goldman Sachs expressed interest in spot trading of Bitcoin and Ethereum. David Solomon, CEO of Goldman Sachs, stated at the Reuters Next conference, "Current regulations are hindering participation in the cryptocurrency market," and "if regulations change, we will consider introducing spot trading for Bitcoin and Ethereum."

Earlier this month, it was reported that Morgan Stanley is preparing to offer cryptocurrency trading services through its subsidiary E-Trade. Morgan Stanley, an early entrant into the cryptocurrency space among traditional institutions, approved financial advisors to recommend Bitcoin spot ETFs to clients last August.

However, for E-Trade to launch cryptocurrency trading services, approval from regulatory authorities such as the Federal Reserve is required. Cointelegraph analyzed this move as "reflecting expectations for a favorable cryptocurrency regulatory environment under President-elect Donald Trump."

More Institutions Expected to Enter the Cryptocurrency Market This Year... "Industry Growth Forecast"

Additionally, more Wall Street institutions are expected to offer cryptocurrency-related services. Bloomberg predicted, "Due to concerns over regulatory uncertainty, many financial institutions have either not provided cryptocurrency-related services at all or have offered them only in a limited capacity," and "under Trump's second-term administration, institutions like JP Morgan, Bank of America, BNY Mellon, and State Street are expected to offer cryptocurrency custody and trading services."

Kristin Smith, CEO of the Blockchain Association, stated, "2025-2026 will be years when traditional financial institutions show more interest in the cryptocurrency sector," and "the cryptocurrency industry does not perceive this as a threat because the market size will grow much larger."

Lee Seunghwa, head of research at Dispread, believes that the entry of Wall Street financial institutions will promote overall growth in the industry. He predicted, "With the entry of traditional institutions, the cryptocurrency industry will experience both quantitative and qualitative growth," and "new financial products utilizing cryptocurrencies will be created."

Meanwhile, Trump's inauguration is scheduled to take place on the 20th (local time) in Washington, D.C., and it remains to be seen whether Trump will actually issue a cryptocurrency executive order on that day.

Lee Suhyun, Bloomingbit Reporter shlee@bloomingbit.io