CoinVoice recently reported that Jaret Seiberg from TD Cowen Washington Research Group stated that the resignation of Federal Reserve Vice Chair Barr 'is not as much of a victory for big banks as it appears on the surface.' Seiberg mentioned in a report on Monday: 'The Democrats will retain their majority on the Federal Reserve Board until early 2026, and given the need to confirm a new regulatory agency, it is difficult to see significant progress this year in relaxing regulations.'
Over the past year, Barr has called for regulation of stablecoins, stating that stablecoins 'borrow the trust of central banks.' '...The Federal Reserve is very eager to ensure that any issuance of stablecoins operates within an appropriate federal prudential regulatory framework so that they do not threaten financial stability or the integrity of the payment system,' Barr said at a meeting in Washington, D.C., in October 2023.
For years, lawmakers have been working on legislation to regulate stablecoins, but the crux of the issue lies in how to allocate regulatory authority between state and federal levels. (The Block)
Yesterday, it was reported that Federal Reserve Vice Chair Barr announced he would resign from his regulatory position on February 28, 2025. The Federal Reserve stated that Barr will continue to serve as a board member but does not intend to participate in significant rule-making efforts until a successor for the vice chair position is confirmed. In the statement, Barr noted that the 'controversy' risks surrounding his position could distract the Federal Reserve's attention. [Original link]