The U.S. government is using banks to execute a widespread crackdown against the crypto industry, according to CoinMetrics co-founder Nic Carter.

Carter claimed that crypto firms are finding it difficult to obtain access to onshore banking systems due to unfriendly government regulations.

He said that the Biden administration is executing a coordinated plan that spans multiple agencies to discourage banks from dealing with crypto firms.

This is evidenced by the recent regulatory faceoff with crypto firms, and the joint statement from the Federal Reserve, FDIC, and OCC, which discouraged banks from engaging with crypto firms due to “safety and soundness” risks.

Carter also warned that if U.S. regulators continue to pressure banks, they risk losing more crypto businesses and U.S. investors to regions with less sophisticated jurisdictions.