Michael Barr, the Federal Reserve Board Vice Chair for Supervision, announced in a January 6 letter to President Joe Biden that he will step down by February 28, or sooner if a successor is named.
While Barr will leave his supervisory position, he will continue as a member of the Federal Reserve Board of Governors.
His decision adds to a series of departures by US officials allegedly linked to “Operation Chokepoint 2.0”, efforts to restrict banking services for cryptocurrency firms.
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Nic Carter, a partner at Castle Island Ventures, welcomed the news of Barr’s resignation. Carter noted that several officials associated with what he sees as anti-crypto policies have already stepped down or announced plans to leave.
These include Securities and Exchange Commission (SEC) chair Gary Gensler, Federal Deposit Insurance Corporation (FDIC) chair Martin Gruenberg, and Senator Sherrod Brown.
Barr has faced criticism from some cryptocurrency industry leaders, who see him as a central figure in limiting access to banking for digital asset companies. In a March 2023 speech, he remarked:
We would likely view it as unsafe and unsound for banks to directly own crypto-assets on their balance sheets.
Industry leaders often cite this statement as a key reason the US banks have been cautious about working with crypto firms.
Senator Cynthia Lummis, a vocal supporter of the digital asset space, criticized Barr’s tenure, stating, "Michael Barr has completely failed to fulfill his duties as Vice Chair for Supervision at every turn, enabling Operation Chokepoint 2.0".
As Michael Barr is set to step down, anticipation for Bitcoin's
