Federal Reserve’s Vice Chair for Supervision Steps Down, Crypto Industry Sees Potential Shift

In a move that has been welcomed by crypto industry advocates, Michael Barr, the Federal Reserve’s Vice Chair for Supervision, has stepped down from his position. Barr, who has been a key figure in shaping the US banking sector’s approach to digital assets, will continue to serve as a Federal Reserve Board of Governors member.

A Shift in Regulatory Stance?

Barr’s departure has been attributed to “disputes over the position,” according to a statement. His exit comes at a time when appointments at US federal regulatory agencies are becoming increasingly politicized, particularly with the upcoming inauguration of President-elect Trump, who is seen as pro-crypto. The crypto community has long called for a more favorable regulatory environment, and Barr’s departure may be seen as a step in that direction.

Industry Reaction

Samuel Armes, founder of the Florida Blockchain Business Association, hailed Barr’s departure as a “huge win” for the crypto industry. “We need to clean out any Elizabeth Warren and Biden-associated appointees…to ensure the federal government goes back to being unbiased toward our industry,” he told Decrypt. Patrick Liou of Gemini also welcomed the move, citing the “untenable” environment for the crypto industry in the US over the past four years.

The Impact of Debanking

Barr’s departure may also be seen as a positive development for crypto businesses that have been affected by debanking. Major crypto exchanges rely on banks to facilitate money transfers, but some companies have been shut out from financial institutions in recent years. While it is unclear whether the Federal Reserve directly pressured banks to limit their interactions with crypto firms, some crypto insiders blame Barr for the debankings that have hindered the US crypto industry.

A Changing Regulatory Landscape

Barr’s departure comes on the heels of other changes in the regulatory landscape. SEC Chairman Gary Gensler and Commissioner Jaime Lizárraga have signaled their intention to resign from their posts when President-elect Trump takes office. Additionally, a meeting to reappoint SEC Commissioner Caroline Crenshaw was canceled last month. However, as NYU Stern Adjunct Professor Austin Campbell noted, a change of guard at the Federal Reserve and the SEC is just one part of a larger puzzle that must be solved to ensure the crypto industry’s brighter future in the US.

Conclusion

The departure of Michael Barr, the Federal Reserve’s Vice Chair for Supervision, may be seen as a positive development for the crypto industry. However, it is just one part of a larger shift in the regulatory landscape. As the US crypto industry continues to evolve, it will be important to monitor the actions of federal agencies such as the Department of Treasury, the IRS, and FinCEN, which exercise significant power over digital asset companies and holders.

Source: Decrypt.co

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