Stablecoin supporter Michael Barr resigned as a senior Federal Reserve board member, giving the cryptocurrency industry hope.
Michael Barr, a Federal Reserve Board Member, has resigned from his position as the Vice Chairman for Banking Supervision approximately two weeks before the inauguration of the next administration. Barr will formally relinquish his position as the Supervision head on February 28, per the Federal Reserve’s announcement. His update has sparked a significant discussion regarding the implications for the crypto industry.
Is the relationship between the Federal Reserve and cryptocurrency entering a new era?
As the official update indicates, Michael Barr will continue serving as a member of the Federal Reserve’s Board of Governors. Michael Barr is recognized for his staunch stance on industry regulations, as evidenced by his tenure as the banking sector supervisor.
In particular, he has consistently promoted the implementation of stablecoin regulations in the United States. It is important to note that the resignation from the position of Bank supervisor occurred in the context of reports that President Donald Trump does not intend to renew his nomination.
According to Eleanor Terrett, a Fox Business Journalist, Michael Barr continues to contribute to the strained relationship between the Federal Reserve and cryptocurrency.
Although the crypto industry regards Michael Barr as a supporter of Sentaro Elizabeth Warren, there are indications that he may have an anti-crypto agenda. Among these is evidence of his meetings with Gary Gensler, the chairman of the Securities and Exchange Commission (SEC).
In November, Gensler submitted his resignation, and President-elect Donald Trump appointed Paul Atkins to serve as the SEC’s Chairman. There is anticipation that crypto regulations will be enhanced following the departure of Michael Barr and Gary Gensler from their respective positions.
The Crypto Industry is Succeeding
The crypto industry is arguably winning, with only 14 days until the inauguration of Donald Trump. In addition to the constraints imposed by the Federal Reserve that resulted in the collapse of Silvergate Bank, numerous individuals anticipate that comprehensive reforms will be implemented.
Coinbase Exchange has already provided the industry with evidence that indicates regulatory overreach. In a recent update, Coinbase obtained unredacted FDIC files demonstrating the commission’s request for banks to exclude crypto firms.
Industry leaders are advocating for a comprehensive examination of Operation Chokepoint 2.0 in response to these trends, a measure that may also involve the Federal Reserve.