Fed's Michael Barr Resigns, Boosting Crypto Sector's Hopes for Easier Regulations
Michael Barr, the Federal Reserve's vice president of supervision, has resigned effective February 28, 2025. His departure is seen as a positive development for the crypto sector, as Barr was known for his regulatory approach that was perceived as adverse to crypto innovation.
Barr's focus on financial stability, consumer protection, and anti-money laundering led to policies that limited the growth and adoption of cryptocurrencies in the U.S. He supported measures like the 'Choke Point' operation and a 100% reserve requirement for stablecoins, which were criticized by the crypto industry.
His resignation comes before the start of Donald Trump's second term as president. Trump has shown a more favorable stance towards cryptocurrencies, potentially signaling a shift in regulatory stance during his second term. Experts anticipate that Barr's successor could have a more favorable stance towards cryptocurrencies, opening new opportunities for the sector in the U.S. The Trump administration is expected to promote technological innovation and reduce regulatory barriers for the crypto sector. Barr's resignation could also facilitate a more constructive dialogue between the crypto industry and authorities, potentially leading to relaxed restrictions on crypto custody by banks.
Michael Barr's resignation from the Federal Reserve's vice presidency of supervision is a significant development for the crypto sector. With Donald Trump's second term approaching and a potential shift in regulatory stance, the crypto industry looks forward to a more favorable environment for growth and innovation.
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