Michael S. Barr, the vice Chairman for Supervision at the Federal Reserve and a staunch cryptocurrency critic, has resigned from this pivotal role. Barr’s departure marks a great shift within the Federal Reserve’s leadership and may offer new opportunities for the U.S. crypto industry to engage with traditional financial institutions.
According to the official press release, Barr’s resignation will take effect on February 28, or sooner if a “successor is confirmed”.
Will Federal Reserve Stance Change?
Despite stepping down from his supervisory role, Barr will remain on the Fed’s Board of Governors until his term naturally expires in 2032. His continued presence on the board suggests that his influence on the policy will persist, through his exit from the Vice Chair position could open doors for more progressive approaches to crypto regulation. “It has been an honor and a privilege to serve as the Federal Reserve Board’s vice chair for supervision, and to work with colleagues to help maintain the stability and strength of the U.S. financial system so that it can meet the needs of American families and businesses,” Vice Chair for Supervision Barr stated in the official announcement.
“The risk of a dispute over the position could be a distraction from our mission. In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor,” he added further.
Michael Barr has long been viewed as a key architect of restrictive policies that have kept U.S. banks at arm’s length from the crypto industry. Often described as a protege of Senator Elizabeth Warren–a known crypto opponent. Barr’s stance was directed to curb the influence of digital assets in the banking sector.
In 2023, Barr led efforts to clamp down on stablecoins, which shows his desire to prevent cryptocurrencies from infiltrating traditional financial systems. His firm stance against the U.S. Central Bank Digital Currency (CBDC) further built his reputation as a crypto skeptic.
Also Read: Riot Mines $52M Bitcoin in December, Adopts HODL Strategy
Credit: Source link
