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FDIC Chair Martin Gruenberg was instrumental in ‘Operation Choke Point 2.0’ against the crypto industry, and has drawn sharp criticism from leaders and lawmakers alike.
Key Notes
Prominent senators, including Tim Scott and Cynthia Lummis, criticized Gruenberg's leadership, highlighting a toxic work environment and lack of accountability at FDIC.They emphasized the need for fresh leadership to restore professionalism and integrity at the FDIC.Gruenberg's exit sets the stage for a Trump-appointed FDIC head, aligning with broader leadership changes.Martin Gruenberg, the chair of the Federal Deposit Insurance Corporation (FDIC), has reportedly announced his resignation from the position and shall leave the office on January 19, just ahead of the Trump administration taking charge.
On Wednesday, November 20, a Reuters report suggested that Democrat Gruenberg confirmed his resignation to FDIC employees, adding that he had already informed the outgoing President Joe Biden regarding the same.
Due to his past actions and being part of Operation Choke Point 2.0, Martin Gruenberg doesn’t have a good rapport or image in the crypto industry. Operation Choke Point 2.0 specifically refers to the Biden administration’s crackdown on federally regulated crypto-friendly banks like Silvergate and others.
The broader goal of this operation was to choke the liquidity flow from banks to the crypto industry. Speaking on this development, Republican House of Representatives member Tom Emmer said:
“Martin Gruenberg was an architect of Operation Chokepoint 2.0 and drove the FDIC into the ground, failing to protect his own employees from the toxic work environment that he cultivated.”
Several prominent figures in the Bitcoin and crypto industry have criticized Gruenberg over the past two years, with Castle Island Ventures partner Nic Carter being one of the most vocal among them.
US Senators Slam the FDIC Chair
Upon his resignation, US Senator Tim Scott slammed the FDIC Chair Martin Gruenberg adding that this announcement was long overdue. He also added that Gruenberg’s decision to stay until the last minute in the office shows his failure to accept the responsibility for his actions. Scott added:
“I look forward to a new leadership at the FDIC who will support the agency’s employees, hold bad actors accountable, and restore a respectable office culture”
“Chairman Gruenberg has failed the FDIC, and it is past time for new leadership. I look forward to the next generation of FDIC leadership that will restore professionalism in the workplace,” Senator Cynthia Lummis (R-Wo) wrote.
Gruenberg’s departure comes six months after announcing his intention to step down, concluding his tenure at the FDIC. At the office, he intermittently served as chair or acting chair since 2005.
His exit also paves the way for former President Trump to appoint a new leader for FDIC. Along with Gruenberg, the crypto industry has been eagerly awaiting the resignation of the US SEC Chair Gary Gensler with the Trump administration looking for a potential replacement.
Crypto industry players are closely watching who will be heading the SEC next. Talks about Bob Stebbins being the SEC Chair have sparked fire among industry leaders, with Ripple CEO Brad Garlinghouse opposing this candidature.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
