Morgan Stanley’s New Crypto Trading Features May Launch in 2026

Sources familiar with the matter say the project is currently in its early stages, but senior executives at the bank anticipate the service will go live next year.

As part of this plan, Morgan Stanley is exploring partnerships with one or more major crypto firms to build a platform where clients can trade popular cryptocurrencies like Bitcoin and Ethereum.

According to insiders, the bank has been actively discussing strategies to expand into crypto since the end of 2023. At present, high-net-worth clients can access crypto ETFs, ETF options, and futures through Morgan Stanley.

Following internal evaluations, integrating spot crypto trading into the E*Trade platform is viewed as a strategic extension of the bank’s existing offerings. This move could intensify competition with platforms like Robinhood Markets Inc. and Coinbase Inc., although the extent of competition will depend on the structure of Morgan Stanley’s partnerships.

JUST IN: Morgan Stanley is reportedly planning to bring crypto trading to its E*Trade platform, marking a major move by a U.S. bank to expand retail access to $BTC and $ETH.

The launch could happen as early as next year. pic.twitter.com/7pZIS2m9oP

— Satoshi Club (@esatoshiclub) May 1, 2025

Current U.S. Regulatory Environment Favors Crypto Sector

The news that Morgan Stanley is considering adding crypto trading to its E*Trade online brokerage has given the industry fresh momentum. Initial reports in early January were already fueled by expectations of a more crypto-friendly regulatory environment.

This initiative comes amid a positive shift in U.S. regulations, largely influenced by the election of President Donald Trump, who ran on a pro-crypto platform and is personally involved in blockchain ventures.

In the first 30 days of the Trump administration, there have already been notable changes in the U.S. crypto industry. Most recently, optimism has grown following the appointment of pro-crypto SEC Chair Paul Atkins.

In fact, the SEC (Securities and Exchange Commission) had begun to soften its stance even before Atkins officially took office. By late February, the agency had already paused several urgent cryptocurrency enforcement cases.

The post Bloomberg: Morgan Stanley Set to Add Crypto Trading to E*Trade Platform! appeared first on Coin Engineer.

E*Trade’s Concerns and Potential Actions

Gill acquired a lot of GME options on E*Trade before abruptly going back to X last month, which sent shares in GameStop flying. A few of them expired that week and most certainly made money for him. The Wall Street Journal on June 3 cited persons knowledgeable with the subject.

The sources claim that the company and its owner, Morgan Stanley, are concerned that Gill might use his influence to inflate GME for personal gain and are debating whether or not his recent comments on X and Reddit qualify as manipulation.

They also worry about removing him, as others would terminate their E*Trade account in support of Gill, and bad attention could result. The Journal noted that no decision has been taken, and the companies could choose to do nothing at all.

Impact of Gill’s Activity on GME

Gill, a trader identified as having a significant impact on the 2021 meme stock rise and GameStop short squeeze, started cryptically posting to X for the first time in three years, sending meme stocks and meme coins blazing.

Gill allegedly uploaded an image on Reddit on June 2, showing that he was holding $181.4 million worth of GME shares and call options, with the wager that the share price would reach at least $20.

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In the Sunday night trade following Gill’s article, GME soared over 19%. Google Finance shows that it finished up 21% at $28 on Monday, June 3, then gained about 8.5% in after-hours trading to $30.36.

GME is up around 68% this year and over 60% since Gill returned to X.

Gill then posted once more on Reddit on June 3 to indicate he reportedly has a $51.8 million gain on his options and a $33.6 million gain on his 5 million GME shares.

Regulatory Scrutiny and Market Reaction

Gill was a licensed broker with Massachusetts Mutual Life Insurance and appeared to have many securities licenses. The Massachusetts Securities Division is looking at Gill’s behavior, according to a spokesman for the Journal.

Those familiar with the regulator’s activities informed the Journal that around Gill’s X postings, the Securities and Exchange Commission is also looking into GameStop call option trading.

The article noted that the SEC has internally debated whether such options deals might be deemed manipulation, but it wasn’t clear if it was especially scrutinizing Gill.

An SEC official advised not commenting on the presence or nonexistence of a prospective inquiry.

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