Government actions linked to a broad anti-crypto initiative are quickly falling apart just weeks before President Trump’s inauguration. Martin Gruenberg, the head of the Federal Deposit Insurance Corporation (FDIC), revealed his plans to resign on January 19, 2025, a day before Trump takes office. Gruenberg expressed his gratitude to the agency staff for their support throughout his tenure as the longest-serving FDIC board member, having joined the agency in 2005 and eventually becoming the chair under Presidents Obama and Biden.
During his time as FDIC chair, Gruenberg played a significant role in a joint effort known as Operation Choke Point 2.0, which targeted blockchain technology. Nic Carter and others familiar with the situation publicly stated that OCP 2.0 aimed to restrict crypto businesses from accessing traditional banking services. Major players in the industry, such as Coinbase, even filed a lawsuit against the FDIC over these allegations, with the legal battle still ongoing as of November 19.
The news of Gruenberg’s impending resignation was met with approval from supporters of digital assets and legislators who are open to blockchain technology. U.S. Representative Patrick McHenry tweeted that the announcement was long overdue but welcomed.
Gruenberg’s departure is seen as another win for the digital asset sector in the wake of Trump’s presidency. Several regulators who were skeptical of cryptocurrencies have either left their positions or hinted at doing so. Gary Gensler, the chair of the Securities and Exchange Commission, is reportedly contemplating stepping down before Trump’s inauguration. Similarly, U.S. Attorney Damian Williams, who oversees the Southern District of New York prosecutor’s office, is also planning to resign. Both individuals played crucial roles in cracking down on blockchain companies and crypto startups. There are talks of former SEC chair Jay Clayton potentially taking over Williams’ position, although Trump’s pick for the next SEC chair remains uncertain.
Following Gruenberg’s announcement, details about his successor at the FDIC were scarce. However, there is speculation that FDIC Vice Chair Travil Hill could be a more crypto-friendly option. In March, Hill advocated for easing banking restrictions on digital assets and called for the FDIC to adopt a neutral stance on blockchain technology. This change in leadership at the FDIC could signal a shift towards a more supportive environment for the crypto industry.