Barr Resigns From Fed Position, Remains On Board of Governors
Michael S. Barr, the Federal Reserve’s vice chairman for supervision, announced today that he is resigning from the position. Barr will no longer hold the third position on the Fed’s Board of Governors, but he intends to remain at the Fed until further notice.
Barr is widely seen in the industry as a key reason why U.S. banks have failed to participate in cryptocurrency and related services.
Barr leaves Fed board position
According to recent media reports releasehis resignation will not take effect until February 28 or until a successor is confirmed. However, Barr will remain on the Fed’s board even if a new vice chair for supervision is found soon.
His term naturally does not expire until 2032. Nonetheless, this may be a Important Opportunities for Cryptocurrency Regulation.
“It is an honor to serve as the Fed’s vice chairman for supervision. The risk of controversy over the position could distract from our mission. In the current environment, I have determined that as governor, I will serve the American people more effectively.”
Barr often descriptive As a “Warren Assistant,” referring to Notorious Anti-Cryptocurrency SenatorElizabeth Warren. Barr displayed similar hostility during his time on the Fed board. 2023, He led the crackdown on stablecoins and expressed a desire to “keep cryptocurrencies away from banking.”
Furthermore, although there are Rumors in early 2024 Some board members support CBDC, Barr says the most outspoken voice Deny this possibility. Since this denial, anti-encryption legislative efforts have Further killing US CBDC. The incident illustrates some of the obstacles federal regulators face in supporting cryptocurrency sentiment.
“Michael Barr was the last Biden/Warren appointee to engineer Operation ChokePoint 2.0 at federal financial agencies. It’s an open secret in Washington, D.C., that Trump will probably fire him. As Fed deputy for supervision President, his rule has been bad, bad, bad, very bad.” wrote Wall Street expert Caitlin Long (ex-Twitter).
However, the Federal Reserve functions as the U.S. central bank and plays a key role in monetary policy. It can still be a powerful industry ally. Barr was just one of seven board members, some of whom expressed at least some degree of goodwill.
For example, Federal Reserve Chairman Jerome Powell Bitcoin compared to gold a month ago. Many of his recent interest rate policies have The industry particularly benefits.
Additionally, President-elect Trump Vows to overhaul regulators’ treatment of cryptocurrenciesand him has replaced important Data from multiple institutions.
On top of that, Barr asserted in his statement that “the board does not intend to engage in any significant rulemaking until the oversight successor Vice Chairman is confirmed.”
In President Biden’s lame-duck period, there are There have been some major initiatives Killing Trump’s pro-crypto policies. However, the Fed will remain silent until his term begins.
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