The post Fed’s Michael Barr weighs in on crypto and debanking—Do it right or not at all appeared on BitcoinEthereumNews.com.

Michael Barr spoke at the Council on Foreign Relations in New York about concerns regarding debanking and regulations on cryptocurrency as he steps down from his role as Vice Chair for Supervision at the Federal Reserve Bank. When asked about pressures on banks during the discussion, Barr emphasized that the Fed strives to play “straight up the middle” on these issues while making sure that financial institutions comply with regulatory standards. Barr urges banks to engage in crypto responsibly or stay out Barr emphasized that the Federal Reserve does not discourage banks from engaging with crypto-related businesses, provided they comply with regulations concerning anti-money laundering (AML), consumer protection, and liquidity management. Barr stated.  You know, we try very much at the Fed to kind of play straight up the middle on these issues. So, we have institutions and banks of all sizes supervised by the Fed that are engaged in crypto-related activities, either themselves directly or supporting clients who do crypto work. Our expectation is they do that in a safe and sound way. Michael Barr The Vice-Chair also highlighted that the Federal Reserve has a supervision program for institutions dealing with digital assets. Some banks managed this sector well, while others encountered liquidity issues or compliance issues that caused their downfall. According to Barr’s remarks on risk management in the banking sector, it is worth pursuing if you do it correctly and effectively; if you do not do it properly, then it’s best to avoid it. Barr’s surprise exit clears path for Trump to reshape Fed leadership Barr announced last month that he will step down on Feb. 28, in a surprise move that will avert a potentially messy legal fight with President-elect Donald Trump, who is now free to replace him with an official of his choosing. Barr…

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Filed under: News - @ February 19, 2025 1:25 am