Michael S. Barr, vice chair for supervision of the U.S. Federal Reserve, has announced his resignation effective February 28 or earlier if a successor is confirmed. He will continue to serve as a member of the Federal Reserve Board. The announcement was made on the Federal Reserve’s website on January 6.
According to the Federal Reserve’s website, Barr expressed gratitude to President Biden, the U.S. Senate, and Chair Jerome Powell for the opportunity to serve in his role. He also thanked Federal Reserve employees for their contributions to maintaining the stability and strength of the U.S. financial system. Barr said he would continue serving as a board member.
Senator Cynthia Lummis posted on her X account that Barr enabled “Operation Chokepoint 2.0” and affected Wyoming’s digital asset industry. She said that the Federal Reserve needs to return to accountability under the law and Congress, adding that she looks forward to working with new leadership.
During his tenure at the Federal Reserve, Barr worked alongside Senator Elizabeth Warren’s anti-crypto stance, opposing stablecoins and cryptocurrencies in traditional banking while resisting Central Bank Digital Currency (CBDC) initiatives. Critics such as Caitlin Long, CEO of Custodia Bank, viewed his policies as overly restrictive and part of “Operation Choke Point 2.0.” President-elect Trump has indicated a shift toward a more crypto-friendly regulatory approach. According to FXSTREET, Barr’s departure raises questions about the Federal Reserve’s future role in cryptocurrency oversight.
The Federal Reserve was established by the Federal Reserve Act of 1913 and serves as the central bank of the United States. It comprises the Board of Governors in Washington, D.C., 12 regional Federal Reserve Banks across the nation, and the Federal Open Market Committee responsible for setting monetary policy. Its key functions include conducting monetary policy, ensuring financial stability, regulating financial institutions, and promoting consumer protection and community development according to their website.
According to information from their website, Michael S. Barr became Vice Chair for Supervision of the Federal Reserve Board on July 19, 2022, for a four-year term and will serve as a board member until January 31, 2032. Before joining the Federal Reserve, he was a dean and professor at the University of Michigan focusing on finance, law, and public policy. Barr also held significant roles at the U.S. Treasury Department under Presidents Clinton and Obama and clerked for Supreme Court Justice David Souter.
