Michael Barr to Step Down as Federal Reserve Vice Chair on February 28
Michael Barr announced his resignation as Federal Reserve Board Vice Chair for Supervision, effective February 28. He will continue to serve on the Federal Reserve Board of Governors.
Barr expressed enthusiasm for his role, focusing on strengthening the US financial system to support American families and businesses. He looks forward to continuing his service as governor.
“It has been an honor and a privilege to serve as the Federal Reserve Board’s vice chair for supervision... I look forward to continuing to serve the American people as governor,” Barr stated.
Barr oversaw financial institutions and collaborated with regulators to maintain banking system stability, particularly during early 2023 challenges. His extensive experience includes roles as Dean at the University of Michigan's Gerald R. Ford School of Public Policy, positions in the US Department of the Treasury, and clerking for Justice David H. Souter at the US Supreme Court.
Crypto Advocates Celebrate Barr’s Exit
Barr's departure was welcomed by many in the crypto industry, who viewed him as anti-crypto. Caitlin Long, CEO of Custodia Bank, criticized his tenure, noting speculation about his potential dismissal by President Donald Trump.
“It was an open secret in DC that Trump was likely to fire him. He had a terrible, horrible, no good, very bad reign as Fed Vice Chair for Supervision,” Long commented.
Crypto lawyer James ‘MetaLawMan’ Murphy also welcomed Barr’s resignation, viewing it as a positive shift for the industry and advocating against “Operation Choke Point 2.0.”
Trump’s Opportunity to Shape Crypto Regulation
Barr’s resignation offers President Donald Trump a chance to appoint regulators more favorable to cryptocurrency. Potential appointments could lead to significant changes within agencies like the SEC and Senate policy committees.
This shift may usher in a new era for the cryptocurrency industry, fostering innovation and creating a supportive environment for digital assets.