Morgan Stanley Plans E*Trade Crypto Trading Launch; Solana Fixes Major Security Flaw; Arizona Governor Rejects Bitcoin Treasury Bill
Morgan Stanley, one of the leading US financial institutions, is preparing to launch cryptocurrency trading for its E*Trade customers in 2026, enabling millions of retail investors to directly buy and sell Bitcoin (BTC) and Ethereum (ETH). This move is part of an accelerated institutional interest in digital assets, following recent pro-crypto US regulatory shifts and growing acceptance by mainstream finance. The adoption may heighten competition with platforms like Robinhood and Coinbase, and signals a new phase in integrating crypto trading within traditional finance. Meanwhile, the Solana blockchain faced a significant test when validators quickly coordinated to patch a critical zero-day vulnerability in its confidential transfer protocol in April. The flaw could have allowed unlimited SOL minting or asset theft, but no compromise or exploit was reported, underscoring ongoing security risks in blockchain systems. In a regulatory setback, Arizona’s governor vetoed a bill that would have allowed the state to invest seized funds in Bitcoin, citing the volatility and risk of cryptocurrencies. These developments highlight rising institutional adoption, persistent technical vulnerabilities, and continued regulatory caution in the evolving cryptocurrency sector.
Bullish
Morgan Stanley’s plan to offer direct crypto trading to E*Trade users represents a major step in institutional and mainstream adoption of cryptocurrencies like Bitcoin and Ethereum. Expanded access for millions of retail investors will likely increase liquidity and overall demand for these assets, potentially driving prices upward especially in the short to mid-term. While the quick patch of a critical Solana security flaw is reassuring and prevents negative sentiment, it does not materially affect the price in the absence of an exploit. Arizona’s governor vetoing Bitcoin reserves is a regulatory headwind but does not offset the significant mainstream expansion signaled by Morgan Stanley. Historically, news of large financial institutions entering direct crypto markets has led to bullish sentiment and price movements, particularly for BTC and ETH.