The crypto leaders have gained attention of sexism and lewd conduct controversy at the US regulator FDIC. The development arises from the explosive Monday, November 13 publication by the Wall Street Journal (WSJ) alleging sexual harassment and misogyny culture at FDIC.
The strip club scandal has left the crypto leaders questioning the benefits of sexual harassment at FDIC. The publication prompted a response from crypto leaders, considering that the sexism pervasiveness alleged in the article harbors political motivations given its timing.
FDIC Culture Portrayed as Orchestrating Sexual Harassment
The WSJ publication recounts multiple instances that female FDIC employees admit were allegedly propositioned for sex by their male colleagues serving in executive roles. Besides, it revealed that sexual harassment extended beyond the workplace, while others admitted to being pressured to drink and visit strip clubs.
The WSJ article disclosed that female employees often were victims of negative performance evaluations they considered both implicitly and explicitly linked to gender. The allegations resonated with the crypto executives’ confession of encountering similar conduct within the US finance sector.
Crypto-oriented bank Custodia chief executive Caitlin Long considered the US banking industry a boys club. She recounted her statements during the US Banking Conference 2022, where a raunchy comedian prompted women to exit the venue. She labeled sexism orchestrated in the banking industry worse than such instances within the digital assets industry.
Long appears to air frustrations to the critics of the digital assets sector previously alleging it harbors gender inequality and hostility to women. The Custodia executive appeared to acknowledge that such inequalities were less extreme as compared to the endemic sexism culture within US banking.
The criticism levied by Long to the federal banking institutions aligned with her previous pronouncements that cast it as hypocritical. The stance arises from the refusal of the Federal Reserve to grant standard accreditation to the Custodia Bank. The denial locks Long’s Custodia from executing conventional bank functions.
Custodia Bank Executive Condemns FDIC and Fed for Anti-crypto Stance
Long condemnation of the alleged FDIC sexism and American banking as boys’ club coincides with a lawsuit initiated by Custodia against the Federal Reserve (Fed). The executive alleges that the Fed illegally creates false pretenses to hinder Custodia’s bid to operate, given that it is amenable to digital assets.
Other crypto leaders and analysts weighed on the unfurling account of the FDIC scandal. They questioned the widespread assumption that the conventional banking system portrays unmatched legitimacy and trustworthiness than the crypto industry.
Blockchain analyst Sam Callahan alleged in a Monday, November 11 commentary that the US leading banking regulator has, in the past decades, run a party culture dominated by misconduct. Nonetheless, the analyst indicated that the folks would turn supportive in the subsequent banking crisis.
Crypto venture capitalist Nic Carter castigated FDIC, indicating that the individuals exposed in the WSJ article often lecture banks regarding safety and vulnerability to digital asset businesses.
Other crypto leaders extended the critiques of the conventional banking system by questioning the timing of WSJ’s article. They wondered if the account would benefit traditional banking institutions.
Crypto Executives Perceive Malice in Article Alleging FDIC Sexism
The WSJ account illustrated that the high staff turnover at FDIC arose from an alleged toxic workplace. The crypto executives opined that the article portrays a critical hindrance for FDIC to properly anticipate failure exhibited by major regional banks, among them the crypto-oriented Silicon Valley Bank (SVB).
BitMEX co-founder Arthur Hayes termed the narrative suspicious. He considered it a calculated attempt to link regional banks’ failure to the ill conduct of the single regulator’s employees. Hayes considered that such would mask the shortcomings of the deliberate monetary policy deployed by the Fed and US Treasury.
The revelation comes when FDIC leaders appear in a session featuring cryptocurrency and de-banking issues before the Senate’s Banking Committee.
The crypto lobbying group Blockchain Association’s head of government relations, Ron Hammond, regretted that the WSJ article would be colored in the narrative of FDIC’s toxic workplace culture. Carter echoed the perspective that such development explains the publication’s timing.
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