Michael Barr resigns as Fed vice chair for supervision

Leaders within the cryptocurrency sector celebrated the departure of Michael Barr from his role as Vice Chair for Supervision at the U.S. Federal Reserve.

Michael Barr announced on January 6th that he would be stepping down from his position at the Federal Reserve by February 28th, as stated in a notice from the U.S. Central Bank. However, it was also noted that despite resigning as the Fed’s Vice Chair for Supervision, Barr will continue to hold a seat on the Board of Governors.

At the Federal Reserve, it has been announced that Michael S. Barr will leave his role as Vice Chair for Supervision by February 28, 2025. However, he will remain in service as a governor following this departure.

— Federal Reserve (@federalreserve) January 6, 2025

Industry celebrates Michael Barr’s last call

Supporters of the cryptocurrency sector are excited about Barr’s departure, viewing it as one more pro-regulation figure stepping down before President Trump resumes his term in the White House.

Known as the “chief debanker,” Barr was seen as a key player in the machinery of Operation Choke Point 2.0 and an opponent of digital assets. Operation Choke Point 2.0, as defined by Castle Island Ventures partner Nic Carter, suggests a deliberate alliance between government agencies to cut off banking services for cryptocurrency and tech-oriented businesses.

Coinbase has taken the Federal Deposit Insurance Corporation to court, where they’ve managed to get their hands on correspondence that hints at a joint effort among multiple agencies to target digital asset startups.

Leading figures such as Custodia Bank CEO Caitlin Long and cryptocurrency lawyer James ‘MetaLawMan’ Murphy consider the developer a positive development in the struggle for crypto users to gain access to banking services. In response to Barr’s decision to resign, Castle Island’s Carter tweeted via X using the phrase “Rest In Peace BOZO.

Following Barr’s resignation, there will be new leadership at all three federal banking regulatory bodies – the FDIC, the Federal Reserve, and the Office of the Comptroller of the Currency. Additionally, crypto-friendly regulators may take charge of agencies such as the Securities and Exchange Commission and crucial Senate policy committees during Trump’s presidency.

UPDATE: Exciting development! Michael Barr, the current Vice-chair of Supervision at the Federal Reserve, has declared that he will step down from his position next month. 👇

— MetaLawMan (@MetaLawMan) January 6, 2025

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2025-01-06 21:24