Anti-Cryptocurrency FDIC Chairman Martin Gruenberg Resigns — ‘Best Day Ever’
Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation (FDIC), is resigning following a scathing investigation that exposed the bank regulator’s toxic workplace culture.
On May 20, Martin Gruenberg said he was ready to step down as chairman of the FDIC, which he had led since August 2005.
“In light of recent developments, I am prepared to step down from my duties once a successor has been identified,” he said in an email to employees. “Until then, I will continue to discharge my responsibilities as Chairman of the FDIC.” It also includes changes to the FDIC workplace culture.”
The FDIC is an independent U.S. government agency that provides insurance to depositors in U.S. commercial and savings banks.
The announcement follows the FDIC’s announced May 7 third-party investigation into allegations of sexual harassment and other interpersonal misconduct and management’s response to the misconduct.
On May 15, Gruenberg testified before Congress about widespread sexual harassment allegations and abuse of subordinates. He faced criticism from Republicans and Democrats who expressed anger, disappointment and disbelief about the depth of the FDIC’s problems, according to Reuters.
Lawmakers have called for his resignation, and Senate Banking Chairman Sherrod Brown was among those urging President Biden to replace Gruenberg.
The White House said it plans to nominate a new candidate for the FDIC chairman position.
But Sen. Elizabeth Warren said she trusts Gruenberg’s ability to bring change to the agency.
The cryptocurrency community celebrated the move, with Castle Island Ventures partner Nic Carter calling it “the best day ever.”
Meanwhile, digital asset industry lawyer John Deaton commented:
“It’s a shame that Elizabeth Warren circled the wagons to keep one of her disgraced dolls in place. “I’m really looking forward to the debate,” she said.
Related: Related: FDIC Officials Call for Better Digital Asset Policies to Maintain U.S. Influence
Gruenberg was instrumental in promoting Operation Choke Point 2.0, a term coined by Nic Carter in 2023, referring to a concerted effort led by the FDIC to prevent banks from holding cryptocurrency deposits or providing banking services to cryptocurrency companies. It is believed that it is.
In an October 2022 speech, Gruenberg compared cryptocurrency assets to risky financial innovations such as subprime mortgages and collateralized debt that led to the 2008 financial crisis.
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