Michael Barr resigns as Fed vice chair for supervision

Crypto industry leaders welcomed Michael Barr’s resignation as Deputy Chairman of the Federal Reserve for Supervision.

According to the statement made by the US Federal Reserve on January 6, Michael Barr stated that he plans to leave his position at the Federal Reserve on February 28. The announcement stated that Barr will retain his seat on the Board of Directors despite his resignation. The Fed’s Deputy Chairman for Supervision.

@federalreserve Michael S. Barr will step down as Deputy Chairman for Oversight of the Federal Reserve Board and continue to serve as governor, effective February 28, 2025: https://t.co/7cxliHdwAq

— Federal Reserve (@federalreserve) January 6, 2025

Industry celebrates Michael Barr’s latest call

Crypto industry participants cheered Barr’s exit as another anti-crypto regulator leaves office ahead of Donald Trump’s return to the White House.

Often referred to as the “chief banker,” Barr was perceived as a key cog in the Operation Choke Point 2.0 machine and a digital asset foe. Conceived by Castle Island Ventures partner Nic Carter, Operation Choke Point 2.0 points to deliberate collusion among federal agencies to drain the banks of cryptocurrency and technology-focused businesses.

Coinbase battled the Federal Deposit Insurance Corporation in court, receiving letters proposing a multi-agency agenda against digital asset initiatives.

Thought leaders such as Custodia Bank CEO Caitlin Long and crypto lawyer James ‘MetaLawMan’ Murphy called the developer “good news” in the fight for crypto access to banking services. “RIP BOZO,” Castle Island’s Carter tweeted via X in response to Barr’s decision to resign.

With the approval of Barr’s resignation, all three federal banking regulators, including the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency, will see a change of guard. Crypto-friendly regulators could also lead agencies like the Securities and Exchange Commission and key Senate policy committees under the Trump administration.