The post U.S. Fed’s Michael Barr to Step Down as Vice Chair for Supervision appeared on BitcoinEthereumNews.com.

Michael Barr, the U.S. Federal Reserve’s vice chair for supervision, will step down from his position on Feb. 28 — or earlier, if a successor is confirmed — according to a Monday announcement from the Federal Reserve. Barr will continue to serve as a member of the Federal Reserve Board of Governors. In a statement included in the Federal Reserve’s announcement, Barr suggested that he decided to voluntarily resign in order to avoid a potential dispute with the incoming Trump administration. “The position of vice chair for supervision was created after the Global Financial Crisis to create greater responsibility, transparency, and accountability for the Federal Reserve’s supervision and regulation of the financial system,” Barr said. “The risk of a dispute over the position could be a distraction from our mission. In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor.” According to Jaret Seiberg, a financial policy analyst at TD Cowen, Barr’s decision to step down is a potentially worrisome sign of the continuing politicization of banking regulation. In an analyst note to clients on Monday, Seiberg wrote, “Agency chiefs used to stay when the White House changed parties. That is no longer the case, which means banks should expect bigger policy swings each time the White House changes control.” The Federal Reserve’s vice chair of supervision functions as the top banking watchdog and is considered one of the most important regulatory roles in the U.S. In his position, Barr had a heavy influence on how the traditional financial system interacted with cryptocurrencies. Though Barr had some crypto bona fides before his appointment, including serving as an advisor to Ripple, the issuer of the XRP token, his tenure has been a mixed bag for the crypto industry. Barr has…

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Filed under: News - @ January 6, 2025 7:19 pm