Michael Barr Resigns From the Fed

TLDR;

Michael S. Barr, Fed Vice Chair for Supervision, resigns effective February 28, 2025, or earlier.
He will stay on the Federal Board of Governors until 2031.
Barr’s resignation avoids possible disputes with the incoming Trump administration.
Barr opposed cryptocurrencies, stablecoins, and the U.S. CBDC.
His exit delays regulatory changes, offering the crypto industry some breathing room.

The Federal Reserve’s Michael S. Barr has recently announced that he is resigning from his position as Vice Chair for Supervision effective February 28, 2025 or even earlier if a successor is selected. However, Barr will continue serving on the Federal Board of Governors until his term expires in 2031.

Barr’s term as the vice chair for Supervision was originally set to end in July 2026. However, the holders of this position have been known to step down when a president from the opposition party takes office. So, Barr’s position was probably not fully secure during the incoming Trump administration. There was a lot of speculation on how Barr would proceed when the new administration took office and attempted to remove him. But Barr has decided to resign ahead of schedule. Whilst resigning, Micheal Barr has shared that he wants to serve the public without worrying about disputes regarding his position:

“The position of vice chair for supervision was created after the Global Financial Crisis to create greater responsibility, transparency, and accountability for the Federal Reserve’s supervision and regulation of the financial system. The risk of a dispute over the position could be a distraction from our mission. In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor.” – Michael Barr’s statement

Why Barr’s Departure Signals Good News For Crypto

Michael S. Barr has been a notable skeptic of cryptocurrency and has always publicly advocated for stricter rules on cryptocurrencies and Stablecoins. Many were concerned about him making regulatory changes that would be anti-crypto during President Joe Biden’s remaining time left in office.

Barr has always expressed his opposition to cryptocurrencies and to U.S. Central Bank Digital Currency (CBDC) as well. He was always against the integration of cryptocurrencies in the conventional banking systems in the country. Barr’s critics have highlighted how his tenure was too restrictive for those in the cryptocurrency space.

Following Michael S. Barr’s exit, the Federal Reserve has shared that it is not going to pass any significant regulatory changes until a new vice chair has been selected. That is also good news for the crypto industry as it provides some breathing room for the industry. New policies and regulations are always causing unexpected changes in crypto prices and values, which causes some uncertainty.

Furthermore, Federal Chair Jerome Powell has also taken a neutral view towards cryptocurrencies in general in comparison to the hard anti-crypto stance of Barr.