In a decision that signals a major shift in Wall Street's approach to digital assets, Morgan Stanley is set to drop nearly all restrictions on its clients' ability to invest in cryptocurrency funds. According to a CNBC report on Friday, October 10, 2025, the wealth management giant will allow its vast network of financial advisors to proactively recommend approved crypto funds to all clients, regardless of their net worth. The new policy, which begins rolling out on October 15, dismantles the high barriers that previously kept crypto investments accessible only to the wealthiest clients and marks one of the most significant moves toward mainstream adoption by a major U.S. bank.

• One of Wall Street's biggest gatekeepers is opening the door to crypto for its entire client base.
• The crucial restrictions on net worth and account types that are being completely eliminated.
• Changing regulatory tide in the U.S. has given the banking giant the confidence to make this move.

This move by Morgan Stanley, which manages over $8.2 trillion in customer assets, represents a monumental change in how digital assets are perceived and distributed within the traditional financial system. For years, major banks have treated crypto as a fringe, high-risk asset class, building a wall of restrictions around it. This new policy effectively tears down that wall, legitimizing cryptocurrency funds as a viable component of a diversified investment portfolio for a much broader audience.

The most critical aspect of the new policy is the shift from a passive, "solicited-only" model to one of active recommendation. Previously, financial advisors at Morgan Stanley were generally only permitted to discuss Bitcoin funds if a wealthy client initiated the conversation. Now, they will be empowered to proactively pitch and advise on these funds as part of their regular portfolio discussions with any client. This transition from reactive gatekeeper to active advisor is a powerful endorsement of the asset class's growing maturity.

The policy change also eliminates the stringent and exclusive barriers to entry that were previously in place. The old rules restricted access to wealth clients with at least $1.5 million in assets and an "aggressive" risk profile. Furthermore, investments were confined to taxable brokerage accounts. As of October 15, these restrictions will be dropped. This democratization of access means clients can now invest in cryptocurrency funds within any account type, including crucial long-term vehicles like retirement and trust accounts, a first for a major U.S. wealth management firm.

This bold step by Morgan Stanley is heavily influenced by the significant "regulatory thaw" that has taken place in the United States. A more welcoming stance from Washington has given conservative institutions the confidence to build out their digital asset offerings. This includes the recent push by the SEC to create an "innovation exemption", which signals a move away from litigation and towards a clearer, more collaborative regulatory environment. This domestic clarity, combined with efforts to align internationally, such as the new US-UK partnership on crypto regulation, creates the stable, long-term policy foundation that a global bank needs.

Initially, the firm's financial advisors will be able to recommend funds from asset management giants BlackRock and Fidelity, the leading issuers of the new spot Bitcoin ETFs. However, the universe of available products is expected to expand rapidly. The recent approval of the first Grayscale multi-asset crypto ETP, for example, shows that the market is already moving beyond single-asset funds to more diversified offerings, a trend that will provide advisors with a richer menu of options for their clients.

While the firm is opening the floodgates, it is still advocating a measured approach. According to reports, Morgan Stanley's global investment committee has recommended that initial client exposure to crypto portfolios be limited to 4%. This reflects the view of the bank's Chief Investment Officer, Lisa Shalett, who described crypto as a "speculative and increasingly popular asset class." It's a risk-managed strategy that allows clients to explore the opportunity without taking on undue portfolio risk. This move by a leader in wealth management is expected to create a domino effect, placing immense pressure on its Wall Street rivals to follow suit or risk being left behind.

FAQs

What is Morgan Stanley's new crypto policy?
Morgan Stanley is dropping its previous restrictions and will now allow its financial advisors to proactively recommend approved cryptocurrency funds to all of its clients, regardless of their net worth or risk profile.

What restrictions were removed?
The bank has removed the requirements that clients must have at least $1.5 million in assets and an "aggressive" risk profile. It is also now allowing investments in all account types, including retirement and trust accounts.

Why is this move significant for the wealth management industry?
As one of the world's largest wealth management firms, Morgan Stanley's decision to fully embrace cryptocurrency funds legitimizes the asset class for mainstream investors and puts significant pressure on competing banks and advisory firms to offer similar access.

Which crypto funds will be available?
Initially, the offerings will be focused on funds from major asset managers like BlackRock and Fidelity. However, the bank has indicated that it plans to expand the list of available funds in the future.