Martin Gruenberg, chairman of the United States Federal Deposit Insurance Corporation (FDIC), will step down following a scathing investigation that revealed a toxic workplace culture at the bank regulator.

On May 20, Martin Gruenberg said he was prepared to step down from his position as chair of the FDIC which he has headed since August 2005.

“In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed,” he said in an email to staff before adding, “Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC’s workplace culture.”

The FDIC is an independent United States government agency supplying insurance for depositors in American commercial and savings banks.

The announcement follows a May 7 published third-party investigation into allegations of sexual harassment and other interpersonal misconduct at the FDIC, along with management’s response to the misconduct.

On May 15, Gruenberg testified before Congress over widespread sexual harassment allegations and mistreatment of subordinates. He faced criticism from Republicans and Democrats, who expressed anger, dismay, and disbelief at the depths of the issues at the FDIC, according to Reuters.

Lawmakers have called for his resignation, and Senate Banking Chair Sherrod Brown was also among those who called on President Biden to replace Gruenberg.

The White House stated it intends to put forward a new nominee for FDIC chair.

However, Senator Elizabeth Warren said that she had confidence in Gruenberg’s ability to effect change at the agency.

The move has been celebrated by the crypto community with Castle Island Ventures partner Nic Carter calling it “the best day ever.”

Meanwhile, digital asset industry lawyer John Deaton commented:

“It is shameful how Elizabeth Warren circled the wagons to keep one of her disgraced puppets in place. I’m so looking forward to the debates.”

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Gruenberg is believed to be instrumental in facilitating Operation Choke Point 2.0, a term coined by Nic Carter in 2023 referring to a coordinated effort led by the FDIC to discourage banks from holding crypto deposits or providing banking services to crypto firms.

In a speech in October 2022, Gruenberg compared crypto assets with the risky financial innovations such as subprime mortgages and collateralized debt obligations that led to the 2008 financial crisis.

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