Regulatory Concerns Behind JP Morgan's Decision
The reason behind severing the relationship is due to regulatory concerns by the US Securities and Exchange Commission (SEC) regarding Gemini. No official comment regarding the decision has been issued.
Regulatory Clarity in the Digital Asset Sector
The year has been filled with headlines about regulatory concerns in the digital asset sector, with US regulators seeking regulatory clarity through enforcement. Major players have backed out of the space due to the uncertainty.
JPMorgan Continues Relationship with Coinbase
JP Morgan and Coinbase were taken on as customers in 2020; only Coinbase has commented on the reports, stating it still maintains a banking relationship with JP Morgan. This marks an ongoing trend of crypto companies having greater difficulty accessing banking services.
Gemini Has Other Banking Options
According to the exchange's website, Gemini still has other banking options available, as it maintains a relationship with State Street banks. The bank has yet to comment on whether it will alter the status of the company's banking relationship based on the information.