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Coinbase, JP Morgan relationship intact amid regulatory crackdown: Sources

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  • Coinbase will continue banking with JP Morgan amid increasing regulatory scrutiny, two people familiar with the matter told The Block.

Rising regulatory scrutiny isn't coming between Coinbase and one of its banking partners, JPMorgan Chase. 

The cryptocurrency exchange and the Wall Street stalwart are sticking together amid increasing scrutiny from Washington and elsewhere, two people familiar with the matter told The Block.

Coinbase pointed to its website listing its banking partners when asked to comment, while JP Morgan declined to comment.

The industry is on high alert as the Securities and Exchange Commission cracks down on a range of crypto companies, including a recent settlement with Kraken over allegations surrounding its staking program. Paxos yesterday was ordered by the New York Department of Financial Services to stop issuing BUSD.

Bloomberg earlier reported the regulatory actions could push banks to stop working with crypto firms, pushing them to the fringes of finance.

SEC Chair Gary Gensler didn't mince words after the Kraken enforcement.

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