Michael Barr of the U.S. Federal Reserve is preparing to resign from his position as Vice Chair for Supervision — marking the latest departure of a U.S. official seemingly related to the "Chokepoint 2.0 Campaign" — a federal effort reportedly aimed at constraining cryptocurrency companies.
Timing of Barr's resignation and his new role
Barr will resign on February 28 — or sooner if a successor is found, as he stated in his January 6 letter to U.S. President Joe Biden. He will continue to serve as a member of the Federal Reserve Board of Governors.
Barr's resignation letter to President Joe Biden. Source: Federal Reserve
Response from the cryptocurrency community
Some cryptocurrency industry executives view Barr as the main reason many U.S. banks are hesitant to provide services to cryptocurrency companies, especially after his March 9, 2023 speech, where he seemingly confirmed the central bank's stance:
"We may view direct ownership of cryptocurrency assets on bank balance sheets as unsafe and unhealthy."
His resignation appears to have sparked reactions among some members of the cryptocurrency community.
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Feedback from leaders and experts
In a statement on January 6 on X, U.S. Senator Cynthia Lummis said: "Michael Barr has completely failed to fulfill his duties as Vice Chair for Supervision everywhere, facilitating the Chokepoint 2.0 Campaign and unlawfully increasing his power by undermining the digital asset industry in Wyoming."
In another post on X on January 6, Caitlin Long, CEO of Custodia Bank, called Barr the "FED'S BANK BLOCKER," referring to him as one of the architects of the Chokepoint 2.0 Campaign.
Source: Caitlin Long
Comments from cryptocurrency investors
Barr's resignation is also viewed positively by Castle Island Ventures partner specialized in Blockchain, Nic Carter.
Carter noted that more than half of current institutional leaders have announced their resignations or have departed as Biden prepares to hand over the position to the upcoming Trump administration. Those leaders include Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg, Securities and Exchange Commission Chairman Gary Gensler, and U.S. Senator Sherrod Brown. Remaining on Carter's list are Massachusetts Senator Elizabeth Warren, Federal Reserve Board member Michael Gibson, and Nellie Lang, Deputy Secretary for Domestic Finance.
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Source: Nic Carter
Michael Barr's activities and viewpoints
However, Barr, who previously served as an advisor at the payment company Blockchain Ripple, has been a strong advocate for responsible monetary stability regulation — something most industry experts agree is necessary to boost cryptocurrency adoption in the U.S.
He also oversees the Federal Reserve's research on central bank digital currency.
Investigation into the "Chokepoint 2.0 Campaign"
Although U.S. officials have not confirmed whether they are attempting to choke the cryptocurrency industry, a recent court order allowed the cryptocurrency exchange Coinbase to obtain unredacted files from the FDIC to investigate its role in the Chokepoint 2.0 Campaign.
"There is a coordinated effort to stop a range of cryptocurrency activities — from basic BTC transactions to more complex services," Coinbase's Chief Legal Officer Paul Grewal explained after reviewing the records.
Regulators' and investigators' viewpoints
Former U.S. prosecutor and cryptocurrency advocate John Deaton has urged the upcoming Trump administration to lead an investigation into the "Chokepoint 2.0 Campaign."
"If these actions go unchallenged, it sets a dangerous precedent for regulators to quietly suppress entire industries they dislike, stifling innovation, competition, and economic opportunity," Deaton said in a post on X on January 4.
Barr was appointed as the Vice Chair for Supervision of the Federal Reserve in July 2022, a role he stated was created after the global financial crisis to provide accountability, transparency, and oversight of the financial system.