Coinbase and IEX are reportedly in discussions to create a regulated digital asset marketplace. Following the recent market collapse and the resulting regulatory scrutiny over the crypto sector, both companies are considering a partnership to establish a federally approved crypto trading platform.

IEX’s chairman, Brad Katsuyama, has already met with officials from the United States Securities and Exchange Commission (SEC) to discuss the foundation of the first crypto exchange that would have unambiguous approval.

The initial plan was to partner with FTX founder, Sam Bankman-Fried (SBF). However, SBF is currently facing a federal indictment for widespread fraud, which forced IEX to seek a new partner.

The indictment against SBF is related to the implosion of FTX, which resulted in significant losses for customers and investors.

The partnership between Coinbase and IEX aims to address the underlying problems in the cryptocurrency sector, particularly the lack of regulatory oversight. The SEC has been cracking down on cryptocurrency firms, such as Kraken and Paxos, accusing them of breaking securities laws.

Kraken agreed to shut down its staking services and pay a $30 million fine to settle the charges, while Paxos was forced to stop issuing the dollar-pegged Binance token BUSD and is now facing accusations by the SEC over selling the stablecoin it considers a security.