Some of Wall Street’s major banks are having internal talks regarding crypto expansion, four industry sources told Reuters. However, the initial steps might be tentative.

With the current pro-crypto US government and evolving regulatory landscape, large lenders are considering crypto pilot schemes, partnerships and limited crypto trading.

Big Banks Hesitate to Venture Heavily into Crypto

According to the four unidentified executives, banks are still hesitant to be the first to expand more into crypto. They fear falling into difficulties in case of a change in rules.

Firms await to follow major banks venturing into crypto after a few test cases, they added.

The pro-crypto stance is encouraging for traditional lenders, said Dario de Martino, from A&O Shearman, M&A partner who works on crypto-related issues.

“But they are still approaching it with caution and viewing the changes in regulation as an opportunity to engage and not a free pass,” Martino added.