Stablecoin Regulation Advocate Michael Barr will step down from his role as the Federal Reserve Vice Chairman. His exit from the role will be late in February or earlier, depending on when a successor takes his place. Despite his resignation, he will continue to serve as a member of the Federal Reserve Board of Governors.
In a resignation letter to President Joe Biden, Barr explained the reasons for his decision. “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. 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.”
Barr has been Vice Chair for Supervision since July 19, 2022. He is popular for his advocacy for stronger industry regulations.
This announcement comes after speculation that President-elect Donald Trump would find a replacement for him, multiple news sources report.
Democrats Retain Fed Majority Until Barr Exits
The Democratic party is expected to maintain and hold most of the Fed Board until early 2026. Seiberg, managing director at TD Cowen, mentioned this in a statement on Monday. “And it is hard for us to see much getting done on the deregulatory side this year, given the need to confirm new regulators.”
Barr is popular for his calls on the regulation of stablecoins over the past year. He stated that stablecoins borrow the trust of the central bank. In a statement in late October 2023, Barr expressed his concerns about the risks of stablecoins.
In an announcement regarding this decision, the Federal Reserve noted that it will not make any major decisions. As the Reserve has only seven board members, the President-elect will choose someone from the current group to occupy the position.
In response, Representative French Hill has publicly welcomed the news of Barr’s resignation on his X account.
READ MORE: MicroStrategy Acquisition Strategy Pushes Bitcoin Price Past $100k
