MICHAEL BARR TO STEP DOWN AS FEDERAL RESERVE VICE CHAIR FOR SUPERVISION

The cryptocurrency industry has welcomed the news of Michael Barr’s resignation as Vice Chair for Supervision at the U.S. Federal Reserve, as announced by the U.S. Central Bank on January 6. According to the notice, Barr will step down from his role effective February 28, 2025, but will retain his seat on the Board of Governors.

Industry Reaction

Crypto industry leaders have hailed Barr’s resignation, perceiving it as a positive development in their fight for crypto access to banking services. Barr, often referred to as the “debanker-in-chief,” was seen as a major obstacle to the growth of the digital asset industry. His departure is viewed as a significant step forward for the crypto community, particularly in light of the perceived “Operation Choke Point 2.0” – a deliberate effort by Federal agencies to debank crypto and technology-focused businesses.

Operation Choke Point 2.0, a term coined by Castle Island Ventures partner Nic Carter, refers to the alleged collusion between Federal agencies to restrict access to banking services for digital asset startups. Coinbase’s recent court battle with the Federal Deposit Insurance Corporation (FDIC) has shed light on this issue, with obtained letters suggesting a multi-agency agenda against digital asset companies.

Implications for the Crypto Industry

The resignation of Michael Barr, along with the anticipated change of guard at the FDIC, the Federal Reserve, and the Office of the Currency Comptroller, may pave the way for crypto-friendly regulators to lead key agencies. This could have significant implications for the crypto industry, particularly if regulators like the Securities and Exchange Commission (SEC) and key Senate policy committees adopt a more favorable stance under the Trump administration.

Thought leaders in the crypto space, including Custodia Bank CEO Caitlin Long and crypto lawyer James ‘MetaLawMan’ Murphy, have welcomed Barr’s decision to step down. As Castle Island’s Nic Carter tweeted, “RIP BOZO” – a sentiment echoed by many in the crypto community.

“RIP BOZO” – Nic Carter, Castle Island Ventures partner

As the crypto industry continues to evolve, it is essential to stay informed about the latest developments and regulatory changes. For more news and updates on the crypto market, visit Global Crypto News.

Tips for Crypto Investors:

  • Stay informed about regulatory changes and their potential impact on the crypto market.
  • Monitor the activities of key regulatory agencies, such as the SEC and FDIC.
  • Consider the potential implications of a change in administration on the crypto industry.
  • Always conduct thorough research before investing in any cryptocurrency or digital asset.
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