FDIC Chair Involved in Crypto ‘Operation Choke Point 2.0’ Resigns

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As a seasoned crypto investor with a keen eye for regulatory developments, I can’t help but feel a sense of relief at the impending departure of Martin Gruenberg from his position as the FDIC chair. My journey in cryptocurrencies has been marked by numerous ups and downs, but the actions of Operation Choke Point 2.0 under Gruenberg’s leadership were a particularly dark chapter. The targeted crackdown on crypto-friendly banks was not only detrimental to the growth of our industry but also felt like a personal attack on the freedom we cherish as crypto enthusiasts.

Martin Gruenberg, currently serving as the head of the Federal Deposit Insurance Corporation (FDIC), is said to have tendered his resignation effective from January 19th. This move comes shortly before the incoming Trump administration assumes office.

On Wednesday, November 18th, I came across a Reuters report hinting at the resignation of Democrat Gruenberg, which he allegedly confirmed to FDIC staff. He also mentioned that he had previously notified the outgoing President, Joe Biden, about this decision.

Martin Gruenberg’s history and involvement in Operation Choke Point 2.0 has led to a strained relationship and negative perception within the cryptocurrency industry. This operation, which is the Biden administration’s efforts to control banks that support cryptocurrencies such as Silvergate and others, has contributed to this image.

The main objective of this action was to restrict the money supply moving from banks towards the cryptocurrency market. In relation to this news, Republican House of Representatives member Tom Emmer commented:

Martin Gruenberg served as the mastermind behind Operation Chokepoint 2.0 yet failed to shield his staff from the detrimental work atmosphere he fostered within the Federal Deposit Insurance Corporation (FDIC), which ultimately led to its decline.

Over the past two years, a number of notable individuals within the Bitcoin and cryptocurrency sector have spoken out against Gruenberg, with Castle Island Ventures partner Nic Carter being particularly vocal in his criticism.

US Senators Slam the FDIC Chair

Following his resignation, U.S. Senator Tim Scott criticized FDIC Chair Martin Gruenberg, stating that the announcement of his departure was belated. He further commented that Gruenberg’s choice to linger in the office until the last moment demonstrated a refusal to acknowledge accountability for his actions. Scott also remarked:

I’m excited for the upcoming change in leadership at the FDIC, as I believe they will prioritize the well-being of the staff, take action against wrongdoers, and work towards reestablishing a professional and respected work environment.

Senator Cynthia Lummis (R-Wy) stated that Chairman Gruenberg has not met the expectations of the FDIC, and it is now crucial to bring in fresh leadership. She expresses her anticipation for the forthcoming FDIC leadership that will reestablish a professional environment.

Six months following his announcement of resignation, Gruenberg has finally concluded his service at the Federal Deposit Insurance Corporation (FDIC). Throughout the years since 2005, he had taken turns serving as chairman or acting chairman within the office.

His departure opens up an opportunity for President Trump to select a new head for the FDIC. Additionally, the crypto sector is anticipating the resignation of SEC Chair Gary Gensler, which the Trump administration may use as a chance to find a possible successor.

Industry participants are keenly observing who might take up the role as SEC Chairman, and discussions surrounding Bob Stebbins for the position have generated significant buzz within leadership circles. However, Ripple‘s CEO, Brad Garlinghouse, has expressed his disapproval of this potential appointment.

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2024-11-20 13:21