Employee Crypto Trading Rules at Morgan Stanley, Goldman, JP Morgan

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Many banks have little oversight over crypto trading in employee personal accounts. Goldman Sachs imposes certain restrictions on employees who work with crypto futures. Here is an overview of personal crypto trading policies at four major US banks.

Wall Street companies generally have detailed policies on what employees are allowed to invest in personally in order to avoid insider trading and conflicts of interest.

And while these policies vary by company and division – traders, traders and others with client relationships are subject to more restrictions than retail bankers, for example – most securities traded through accounts brokerage require a compliance clearance.

Even approved trades can have hold periods of 30 days or more, in part to prevent workers from being distracted by day trading.

But crypto is another story. An insider review of company policies found that requirements for clearing and reporting transactions vary. And platforms like Coinbase provide a place to trade cryptos outside of traditional brokerage accounts, where companies have a framework to monitor transactions.

Wall Street residents have embraced personal crypto trading amid the relative lack of paperwork. Meanwhile, banks have branched out into areas such as bitcoin futures trading, but are not yet really involved in crypto cash transactions. Compliance rules could change as they move through space.

Companies typically keep their employee investment compliance rules closely watched, but the older policies of a number of companies, including Bank of America and JPMorgan, are featured in a Securities and Exchange Commission database. and offer an idea of ​​what is involved, such as customs clearance periods. , restrictions for particular asset classes and processes for carrying out transactions.

Insider has confirmed the current personal trading policies for cryptocurrencies at several of the major US banks:

Bank of America

Bank of America has no obligation for staff members to compensate or endure a holding period for their crypto transactions, people familiar with the matter told Insider.

Goldman Sachs

At Goldman Sachs, which this year relaunched a crypto-futures trading desk it originally set up in 2018, most employees can trade cryptocurrencies without restriction or prior approval, according to the spokesperson for the Maeve DuVally company.

The exception: Employees who create markets for crypto-related products, such as bitcoin futures, are prohibited from trading cryptocurrencies, and staff in the Digital Assets group must clear transactions.

JP Morgan

Bank of America has no obligation for staff members to compensate or endure a holding period for their crypto transactions, people familiar with the matter told Insider.

Morgan stanley

Morgan Stanley doesn’t ban crypto trading, but it does require employees to report any outside brokerage accounts, according to a person familiar with the policy.

This means that someone trading ether on an account with Robinhood, which offers brokerage services, would have to clear the account with the company, but if they were trading with a crypto wallet outside of a brokerage house , he would have no such obligation.

“It’s an evolving compliance space,” this person said, adding that the bank may demand more disclosure as it becomes more involved in crypto.

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