Martin Gruenberg, the Federal Deposit Insurance Corporation chair and alleged “architect of Operation Chokepoint 2.0,” has reportedly announced he’ll retire on Jan. 19 — a day before Donald Trump is inaugurated as United States president.
Reuters reported on Nov. 20 that Gruenberg, a Democrat, confirmed his departure in a message to FDIC employees, saying that he had informed outgoing President Joe Biden of his decision.
Republican House of Representatives member Tom Emmer blasted Gruenberg on X in response to the news, claiming he 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.”
Source: Tom Emmer
Emmer’s comment stems from a May congressional hearing in which Gruenberg testified after an investigation said the FDIC under his watch had fostered a culture that exposed staff to sexual assault, harassment and mistreatment.
Operation Chokepoint 2.0 refers to a rumored and unconfirmed United States government initiative to pressure banks into refusing or limiting services to crypto businesses, which may have caused crypto exchanges like Binance to be without a local banking partner after Silvergate and Signature Bank both collapsed in March 2023.
Gruenberg’s exit comes six months after he said he would step down and will end his time at the FDIC where he has intermittently served as chair or acting chair since 2005.
His exit clears the way for Trump to select a new boss for one of the country’s top banking regulators.
The FDIC’s role is to maintain stability and public confidence in the United States financial system by insuring deposits, examining and supervising financial institutions for consumer protection, and managing failed banks.
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Nic Carter, a partner at Castle Island Ventures who coined the term “Operation Chokepoint 2.0,” recently claimed that Silvergate likely would have survived had it not been forced into voluntary liquidation by US regulators trying to “decapitate” the crypto industry.
He claimed an insider at the bank told him Silvergate was forced to cap crypto deposits at 15% or face consequences.
Crypto companies rely heavily on crypto-friendly banks to accept deposits, enable on-ramps for customers and pay expenses.
Most industry pundits expect a friendlier crypto regulatory environment under Trump after the president-elect campaigned on ending perceived regulatory hostility toward the industry.
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