Federal Reserve Vice Chair for Supervision Michael Barr announced his resignation effective February 28, marking a major shift in U.S. financial regulation leadership. Barr will continue serving as a member of the Federal Reserve Board of Governors.
The announcement sparked reactions across the cryptocurrency industry, where Barr was known for his skeptical stance toward digital assets. In March 2023, he had warned that banks directly owning crypto assets would be considered "unsafe and unsound."
U.S. Senator Cynthia Lummis criticized Barr's tenure, stating he "failed to fulfill his duties" and enabled what critics call "Operation Chokepoint 2.0" - an alleged coordinated effort to restrict banking services to crypto companies.
Custodia Bank CEO Caitlin Long labeled Barr as "the Fed's debanker-in-chief," while blockchain venture capitalist Nic Carter noted his departure adds to a broader exodus of regulatory leaders as the Biden administration prepares for transition.
Despite his crypto-skeptical reputation, Barr previously served as an adviser to blockchain company Ripple and advocated for stablecoin regulation during his term. He also oversaw the Federal Reserve's research into central bank digital currencies.
The timing of Barr's exit coincides with ongoing investigations into Operation Chokepoint 2.0. Recently, crypto exchange Coinbase obtained permission to review unredacted FDIC files related to potential coordinated efforts against crypto activities.
Barr assumed the vice chair position in July 2022, a role created after the Global Financial Crisis to enhance financial system oversight. Michelle Bowman has emerged as a potential successor to fill the position.