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- Anti-crypto Fed official Michael S. Barr resigns, raising hopes for a shift in U.S. cryptocurrency regulation.
- Barr’s departure may pause major Fed rulemaking, allowing the new administration to reshape digital asset policies.
According to a January 6, 2025, Federal Reserve Board press release, Michael S. Barr will resign from his position as Vice Chair for Supervision, effective February 28, 2025.
In line with a CNF post earlier, it was reported that Michael Welsh and Joseph Watkins, lead attorneys in the SEC case against Debt Box, resigned after a federal judge criticized the agency for “gross abuse” of power. Following these events, Michael S. Barr also announced his resignation.
Barr, who has served as Vice Chair for Supervision since July 19, 2022, submitted his letter of resignation to President Joseph R. Biden. Barr stated:
It has been an honor and a privilege to serve as the Federal Reserve Board’s vice chair for supervision, and to work with colleagues to help maintain the stability and strength of the U.S. financial system so that it can meet the needs of American families and businesses.
While Barr will vacate the third-highest position on the Fed’s Board of Governors, he plans to remain as a governor until his term expires in 2032. Known for his staunch opposition to crypto, Barr played a pivotal role in restricting U.S. banks from engaging with digital assets and related services during his tenure.
A Legacy of Crypto Crackdowns: What’s Next for Crypto Regulation?
Barr has also openly opposed the adoption of a U.S. central bank digital currency (CBDC), further cementing his reputation as a crypto skeptic. His departure could signal a shift in the Federal Reserve’s approach to cryptocurrency regulation.
Fed Chair Jerome Powell has recently expressed a more neutral stance, likening Bitcoin to gold, while President-elect Trump has pledged to reform the regulatory framework surrounding digital assets.
With Barr’s retirement, the Fed is expected to pause major rulemaking until a new Vice Chair is appointed, offering the incoming administration an opportunity to shape the future of crypto policy in the United States.
As the regulatory landscape evolves, Barr’s exit marks a potential turning point for the crypto industry, raising hopes for a more balanced approach to innovation and financial oversight. Meanwhile, a recent CNF report highlighted expanding crypto adoption, with 30% of Americans open to receiving Bitcoin salaries.
At the time of writing, Bitcoin (BTC) is trading at $101,721.90, having surged by 3.01% in the past day and 10.29% in the past week. See BTC price chart below.
