Representative Tom Emmer has criticized Martin Gruenberg for his role in Operation Chokepoint 2.0, and he is about to resign as the chief of the Federal Deposit Insurance Corporation (FDIC).
According to reports, Martin Gruenberg, the director of the Federal Deposit Insurance Corporation and the purported “architect of Operation Chokepoint 2.0,” has declared his retirement on January 19, the day preceding Donald Trump’s inauguration as president of the United States.
Gruenberg, a Democrat, verified his departure in a message to FDIC employees on Nov. 20, according to Reuters. He stated that he had informed outgoing President Joe Biden of his decision.
In response to the news, Republican House of Representatives member Tom Emmer criticized Gruenberg on X, asserting that he was “an architect of Operation Chokepoint 2.0 and drove the FDIC into the ground, neglecting to safeguard his own employees from the corrosive work environment that he cultivated.”
Emmer’s statement is a result of a May congressional hearing during which Gruenberg testified that the FDIC, under his leadership, had cultivated a culture that subjected employees to maltreatment, harassment, and sexual assault. Gruenberg’s testimony was subsequent to an investigation.
Operation Chokepoint 2.0 is a rumored and unconfirmed United States government initiative that aims to compel banks to refuse or restrict services to crypto businesses. This may have resulted in crypto exchanges such as Binance being without a local banking partner following the collapse of Silvergate and Signature Bank in March 2023.
Gruenberg’s departure occurs six months after he announced his intention to retire and conclude his tenure at the FDIC, where he has intermittently served as chair or acting chair since 2005.
Trump will be able to appoint a new leader for one of the nation’s foremost finance regulators as a result of his departure.
The FDIC’s responsibility is to ensure the stability and public confidence of the United States financial system by managing insolvent banks, examining and supervising financial institutions for consumer protection, and insuring deposits.
Nic Carter, a partner at Castle Island Ventures who introduced the term “Operation Chokepoint 2.0,” recently stated that Silvergate would have likely endured if it had not been compelled to enter voluntary liquidation by US regulators in an effort to “decapitate” the crypto industry.
He alleged that an informant at the bank informed him that Silvergate was compelled to limit crypto deposits at 15% or face repercussions.
Crypto companies depend significantly on banks that are crypto-friendly in order to receive deposits, facilitate on-ramps for consumers, and cover expenses.
After the president-elect campaigned on ending perceived regulatory hostility toward the industry, the majority of industry commentators anticipate a more lenient crypto regulatory environment under Trump.
Also Read: Gemini Expands to France with VASP License
Wallets