According to PANews, the Biden administration's regulatory crackdown on cryptocurrencies has led to a major restructuring of Custodia Bank, a Wyoming financial institution. The bank notified employees that it would lay off nine of its 36 employees to preserve capital.

The layoffs come as Custodia is locked in a legal battle with the Federal Reserve over so-called master accounts, without which banks must conduct business through other institutions at high costs.

Custodia executives blamed the layoffs on the U.S. federal government’s “Operation Chokepoint 2.0.” Founder and CEO Caitlin Long said the action was a devastating blow to the law-abiding U.S. cryptocurrency industry.