“Regulators in general failed to adequately address Celsius [Network], Terra and FTX, and are now going after any of the on-ramps they can to try to reduce access to the system,” Campbell, now an adjunct professor at Columbia University's Business School, said on CoinDesk TV’s “First Mover” on Wednesday.

According to Campbell, similar approaches are being taken by federal banking regulators making policies “to restrict access for crypto companies to the banking system.”

Paxos is one of those crypto companies facing regulatory scrutiny. Earlier this week, the stablecoin issuer received a Wells notice from the U.S. Securities and Exchange Commission (SEC) warning of regulatory action for the company's alleged sale of an unregistered security, in this case the Binance USD (BUSD) stablecoin. 

“The NYDFS is the regulator and they’re the ones with the authority directly to tell Paxos what they’re allowed to do,” Campbell said. “The SEC can make a play, alleging [BUSD is] a security, but just like Ripple, that’s probably going to court. With the NYDFS there’s no question.”