Wall Street is finally starting to warm up to cryptocurrencies thanks to President Donald Trump’s efforts to boost the industry, especially after his January 23 executive order establishing a National Reserve for Digital Assets.

Just a week into Trump’s second term, CNBC reported on January 25 that top financial executives are backing his cryptocurrency policies, a major turning point for an industry that had previously kept Bitcoin at bay.

Trump’s executive order emphasizes the need to “protect and promote” the use and development of cryptocurrencies.

Wall Street CEOs Get In on the Game

In Davos, Switzerland, at the World Economic Forum, Morgan Stanley CEO Ted Peek said, “We’ll work with the Treasury and other regulators to figure out how we can offer this in a safe way.” The bank is known for pushing the envelope in cryptocurrency before most of its peers.

In 2021, Morgan Stanley became the first major U.S. institution to give wealthy clients access to Bitcoin funds. By 2024, he authorized his advisers to offer clients a Bitcoin ETF.

“Crypto President” Trump is surrounding himself with cryptocurrency supporters to ensure his agenda is carried out. Paul Atkins, a former SEC commissioner under George W. Bush, has been nominated to lead the SEC. Howard Lutnick, CEO of Cantor Fitzgerald, has been named Commerce Secretary.

Scott Bessent, a hedge fund manager and Bitcoin supporter, is Trump’s nominee for Treasury Secretary. If confirmed, Scott would oversee the IRS and the Financial Crimes Enforcement Network, two agencies that are critical to creating clear tax and regulatory policies for cryptocurrencies.

Trump’s policies address long-standing concerns on Wall Street. One of the main complaints was the SEC’s 2022 accounting rule, known as SAB 121, which forced banks to classify cryptocurrencies as liabilities on their balance sheets.

The rule discouraged banks from offering cryptocurrency custody services by imposing strict capital requirements. But the SEC repealed SAB 121, removing one of the biggest hurdles for financial institutions looking to deal in digital assets.

“Goodbye, SAB 121! It was no fun,” said SEC Commissioner Hester Peirce, who was appointed to lead a new “cryptocurrency task force” on Tuesday.

Bank of America CEO Brian Moynihan, who also spoke at Davos, welcomed the changes. “If the rules come into force and make this a reality that you can do business with, you’re going to find that the banking system is going to be tough on the transaction side of things,” he said.

He pointed to cryptocurrency’s potential as a payment system, comparing it to Visa or Apple Pay. However, Moynihan stopped short of endorsing cryptocurrencies as investment assets, calling that a “separate issue.”

Bitcoin’s price has certainly responded to the optimism. On Monday, it jumped to nearly $110,000, its highest price ever.

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