BlockBeats news, on January 7, Jaret Seiberg of TD Cowen's 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 may seem.'
In a report on Monday, Seiberg stated: 'The Democrats will retain their majority on the Federal Reserve Board until early 2026, and given the need to confirm new regulatory officials, it is hard to see much progress this year in easing regulations.'
Barr has called for regulation of stablecoins over the past year, stating that stablecoins 'borrow the trust of central banks, and the Federal Reserve is very eager to ensure that any stablecoin issuance 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 conference held in Washington, D.C. in October 2023.
For years, lawmakers have been drafting legislation to regulate stablecoins, but the crux of the matter lies in how to allocate regulatory authority between state and federal levels. (The Block)
In yesterday's news, Federal Reserve's Barr announced he will resign from the position of Vice Chair of Supervision on February 28, 2025. The Federal Reserve's statement indicated that Barr will continue to serve as a member of the Federal Reserve Board, but does not plan to participate in significant rulemaking efforts until a successor to the Vice Chair position is confirmed. Barr stated in the announcement that the 'controversy' surrounding his position could distract the Federal Reserve's focus.