Michael S. Barr, Vice Chair for Supervision at the Federal Reserve, is stepping down. His departure is viewed as a potential turning point for the crypto industry. Barr was a strong voice against banks engaging with crypto, making this an impactful resignation for future regulatory approaches.
Despite his resignation, Barr will remain on the Fed board for now. His term was originally set to expire in 2032, but his early exit might expedite crypto-friendly regulations.
During his time at the Fed, Barr was known for his anti-crypto stance, leading crackdowns on stablecoins and opposing the issuance of a US digital dollar, or CBDC. His close alignment with Senator Elizabeth Warren highlighted his resistance to crypto's advancement in the banking sector.
This shift comes amidst a potentially more crypto-friendly administration under President-elect Trump, who has promised to overhaul crypto regulations. Trump's vision might align better with other members of the Fed who are less hostile to digital currencies.
The Federal Reserve, as the US Central Bank, holds significant influence on monetary policy. Other Fed members, like Chair Jerome Powell, have shown somewhat friendlier attitudes towards crypto, comparing Bitcoin to gold and implementing policies beneficial to the industry.
Barr's exit might also delay new major rulemakings until the next Vice Chair for Supervision takes over, providing a window for pro-crypto policies to develop.
