According to ChainCatcher, Jaret Seiberg of TD Cowen Washington Research Group said that the resignation of Barr, the Federal Reserve's vice chairman for supervision, "is not as much of a victory for big banks as it appears on the surface."
“With Democrats set to retain their majority on the Federal Reserve until early 2026, it’s hard to see much progress being made on deregulation this year given the need to confirm new regulators,” Seiberg said in a note Monday.
Barr has called for stablecoin regulation over the past year, saying that stablecoins “borrow on the trust of the central bank.” “…The Federal Reserve is very interested in ensuring that any stablecoin issuance operates within the 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 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's news, Federal Reserve Vice Chair Barr announced that he will resign from his position on February 28, 2025. The Federal Reserve stated that Barr will continue to serve as a Federal Reserve Board member, but does not intend to participate in significant rule-making work until a successor for the vice chair position is determined. In the statement, Federal Reserve Barr indicated that the 'controversy' risk associated with his position could divert the Federal Reserve's attention.
