Morgan Stanley is preparing to offer cryptocurrency trading on its E*Trade platform. This would be the most direct move so far by a major US bank to let retail users buy and sell digital assets.

The move comes amid regulatory changes in the United States. On Thursday, the Federal Reserve officially removed two supervisory letters that had discouraged banks from engaging in crypto-related activities. The change means state member banks no longer need to notify the Fed in advance of planned or current crypto-asset activities. These will now be reviewed through the standard supervisory process.

Crypto Trading Coming to E*Trade

The plan is still in its early stages. According to Bloomberg, the launch may take place next year. The bank is exploring partnerships with crypto-native firms to support the technical side of the trading system.

Morgan Stanley already offers some crypto-related products, such as ETFs, options, and futures. These are aimed at wealthier clients. The new plan would expand access to a broader group of users.

Trump Era Sparks Renewed Crypto Interest

Internal talks reportedly gained momentum after Donald Trump returned to the White House last year. His administration began reversing several crypto-related regulations. That has encouraged some financial institutions to reconsider their approach to the sector.

If Morgan Stanley proceeds, it could increase pressure on crypto-focused platforms like Coinbase and Kraken. These firms currently serve a large share of the retail market.

Other financial companies are also moving toward crypto. Charles Schwab has shown interest in offering spot trading. SoFi is also reviewing its crypto plans. It says the U.S. market has undergone a fundamental change.