Several insiders told the Cointelegraph that the U. S. government seems to have revived its former technology to crack down on password companies and banks that provide services to the industry.

According to Knicks Carter, founder of venture capital firm Castle Island and password information company Coin Metrics, the so-called development strategy includes protecting the traditional financial system and password sales market by using "several organizations to prevent banks from getting along with password companies." the aim is to correctly guide password companies to "have no bank accounts at all."

That view, she told Cointelegraph, depends on Carter's conversations with executives of banking companies, including encrypting local banks and traditional banks. They told me that they were under tremendous pressure from the Fed meeting and the Federal Deposit Insurance Corporation. The founder told me that it would be difficult for them to open a bank account for a new company at any time. According to Carter:

Regulators bullied and bullied bank leaders behind their backs, and then released public "guidance", focusing on the fact that banks are still free to escrow passwords or provide services for password users. In fact, they are not free to do so anyway.

Other recent regulatory issues include a joint declaration issued by the Federal Reserve meeting, the Federal Deposit Insurance Corporation and the Office of the Superintendent of money Engineering on January 3, warning banks of the risks of encryption business. and support them to prevent it out of "security and stability" considerations. Also last month, Binance announced that it would only resolve transactions worth more than $100000 because of a new signing bank policy.

In December 2022, Signature Bank announced plans to reduce encryption services, return assets to customers and close his account. It is reported that because of liquidity problems related to the bear market in the stock market and the collapse of password trading center FTX, the bank raised nearly $10 billion from the federal home purchase loan banking system software in the final quarter of 2022.

Blockchain Technology collaborates with CEO, and Aaron Kaplan, a lawyer at Guthley Kaplan Nussbaum, a law firm, told Cointelegraph: "We are particularly concerned about password trading centers and related intermediary services operating outside the United States, because the jurisdictions they choose generally focus on maximizing interests and generally hurt clients' interests." He explained:

"the bank has reassessed whether it is worth the risk to give these services again."

CoinbaseCEO Bobby Armstrong commented on Twitter that another clear priority for US regulators is to strictly prohibit encryption chip services from retail customers. Betting is a whole process that allows password investors to lock their password property in a smart contract in exchange for profits and Internet money.

The expertise of the US government is not uncommon. In 2013, a federal regulatory measure called choke Point targeted a variety of "high-risk" industries and tightened controls on commercial banks that provide services to those industries.

Impact on encryption Enterpri

Carter said the impact on the password industry could include reducing the level at which shareholders convert coins into dollars, shutting down programs in the U. S. sales market by password trading centers, and making it difficult to obtain financial reforms. In his view, the move could lead to a return to the early days of the password industry:

"this is also a return to the 'embarrassing youth' of 2014-16, when it used to be very difficult to get assets in the trading center. There is no proactive side to this matter.

Kaplan believes that "the cryptographic financial services ecosystem has evolved to meet the set regulatory framework", which means that companies in the field will have to "accept control or perish the country".

By comparison, Carter predicts that these measures will undoubtedly be futile for the industry and retail investors. He will grant the "shadow bank" the right and further delay its rapid development in the United States. They seem to believe that they can disconnect passwords from consumers' browsing of the next FTX' by harassing banks. This is not true-because the blockchain and stable code already exist. They are so naive. The real goal is to block password growth in every way they are familiar with.

The Federal Reserve meeting and the Office of the Superintendent of Monetary Engineering did not immediately respond to Cointelegraph's request for comment.