Wall Street’s Crypto Comeback: Banks Gear Up for IPO Boom Under Trump
Wall Street banks have been hesitant for years due to regulatory uncertainty, however, Trump’s administration seems to be giving them the green light.
Wall Street’s biggest banks are rapidly expanding their involvement in the crypto sector as former President Donald Trump’s pro-crypto policies reshape the regulatory landscape.
With expectations of clearer rules and reduced scrutiny, financial giants such as Morgan Stanley, Bank of America, and RBC are preparing for a wave of initial public offerings (IPOs) from cryptocurrency firms.
Banks Reassess Their Crypto Strategy
For years, regulatory uncertainty kept traditional financial institutions at arm’s length from the crypto market. However, the political shift under Trump’s leadership is now encouraging them to reconsider. Reports indicate that Morgan Stanley is actively engaging with crypto firms exploring public listings, while Bank of America is internally discussing new opportunities to facilitate crypto-related deals.
Meanwhile, RBC, historically cautious about digital assets, has recently structured a convertible bond sale for Bitcoin mining company Core Scientific. According to reports, the bank is “evaluating more opportunities” in the crypto sector as confidence in the industry rebounds.
Trump’s Policies Fuel Market Confidence
A major factor driving this renewed interest is Trump’s commitment to making the U.S. a global leader in cryptocurrency adoption. His administration has already established an SEC task force led by crypto-friendly commissioner Hester Peirce. Additionally, White House crypto czar David Sacks has hinted at discussions surrounding a potential U.S. Bitcoin reserve.
Trump has also openly expressed his vision for the country’s crypto future.
At the Bitcoin 2024 Conference, he stated, “We will ensure that the future of crypto and Bitcoin will be made in America.”
His support has emboldened firms such as Gemini, Kraken, and Circle, which are now reconsidering IPO plans previously delayed by regulatory uncertainty.
With the IPO pipeline re-opening, banks are eager to capitalize on underwriting and advisory fees. HSBC has also taken a step forward by appointing a head of digital asset research within its foreign exchange division.
Bank of America CEO Brian Moynihan acknowledged the shift, saying, “We know how to enter the field. From the transactional side, I think you’ll see the banking industry make moves.” As regulatory clarity improves, analysts predict more financial institutions will follow suit. Wall Street’s growing involvement in crypto could begin a new era for institutional adoption.
