US Government Using Banks to Crack Down on Cryptocurrency: Nic Carter

The U.S. government is reportedly using the banking sector to crack down on the cryptocurrency industry, according to Nic Carter, co-founder of CoinMetrics.

In a guest post for PirateWires, Carter claimed that the Biden administration is executing a coordinated plan to discourage banks from dealing with crypto firms, making it increasingly difficult for them to access onshore banking systems due to unfriendly regulations.

This follows recent moves by banks to shut down crypto-related services and the joint statement by the Federal Reserve, FDIC, and OCC warning banks of the risks they face by engaging with crypto firms.

Carter suggested that the current regulatory situation with crypto firms could be a resurgence of Operation Choke Point (OCO) and warned that if U.S. regulators continue to pressure banks, the country risks losing more crypto businesses and investors to regions with more favorable regulations.