JP Morgan (NYSE:JPM) has severed its relationship with the Winklevoss brothers crypto platform Gemini, according to a report by Reuters. The article cited a contact that was “familiar with the situation.”
At the same time, Gemini is disputing the claim. In a Tweet, Gemini stated that “despite reporting to the contrary, Gemini’s relationship remains intact with JPMorgan.
If JPM has decided to back away from Gemini and crypto in general, it would come as little surprise. The crypto winter, crypto contagion, and collapse of multiple crypto firms – including the FTX debacle, has caused many to question the sector of Fintech. Recent developments at Silvergate (NYSE:SI) have not helped. Once a top-regulated bank willing to provide services for crypto exchanges and other platforms, the crumbling industry has led Silvergate to question its own viability.
At the same time, federal regulators have stepped up their anti-crypto rhetoric causing jitters across the board. While the Biden administration may have been willing to support digital asset innovation at one point, more recent statements display less determination in helping the industry evolve.
