Michael S. Barr, vice chairman of supervision at the Federal Reserve, announced today that he is resigning from this position. Barr will no longer hold this third position on the Board of Governors, but he intends to remain at the Fed until further notice.
The industry widely views Barr as one of the main reasons why U.S. banks have been unable to engage in crypto and related services.
Barr leaves Fed board post
According to recent press releasehis resignation will not take effect until February 28 or until a successor is confirmed. However, even if a new vice chair for supervision is found quickly, Barr will still remain on the Fed board.
His term will naturally not expire until 2032. Nonetheless, this could present a significant opportunity for crypto regulation.
“It has been an honor and privilege to serve as Vice Chairman of Federal Reserve Supervision. The risk of a dispute over the position could distract us from our mission. In the current environment, I have determined that I will be more effective in serving the American people from my role as governor,” he said.
Barr is often describe as a “Warren acolyte,” referring to the infamous anti-crypto senator, Elizabeth Warren. Barr displayed similar hostility during his tenure on the Fed board. In 2023, he led a crackdown on stablecoins and expressed a desire to “keep crypto out of banking.”
Additionally, although there were rumors in early 2024 that some board members supported a CBDC, Barr has been the most outspoken voice denying the possibility. Since this refusal, anti-crypto legislative efforts have further stifled an American CBDC. This episode illustrates some of the obstacles to pro-crypto sentiment among federal regulators.
“Michael Barr is the latest Biden/Warren appointee who architected OperationChokePoint 2.0 at a federal financial agency. It was an open secret in Washington that Trump was likely to fire him. He had a terrible, horrible, no good, very bad reign as Fed vice chairman for supervision. wrote Caitlin Long, Wall Street (formerly Twitter) expert.
However, the Federal Reserve functions as the central bank of the United States and plays a key role in monetary policy. This can still be a powerful ally to the industry. Barr is just one of seven board members, and some of them have expressed at least somewhat friendlier attitudes.
For example, Fed Chairman Jerome Powell compared Bitcoin to gold a month ago. Many of its recent interest rate policies have particularly benefited the industry.
Additionally, President-elect Trump has pledged to overhaul regulators’ crypto treatment, and he has already replaced key figures at several agencies.
Most importantly, Barr asserted in his statement that “the Board does not intend to make any significant decisions until a vice chair for oversight is confirmed.”
In President Biden’s lame duck period, there are already some major initiatives aimed at stifling Trump’s pro-crypto policies. The Federal Reserve, however, will remain silent until the start of its mandate.
Disclaimer
In accordance with the Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and current information. Readers are, however, advised to independently verify the facts and seek professional advice before making any decision based on this content. Please note that our Terms and Conditions, Privacy Policy and Disclaimer have been updated.
