Federal Reserve Supervisory Vice Chairman Michael Barr stepped down on Monday, a move hailed by crypto industry advocates as a move toward more digital asset policies.
Bar he said. Although he will continue to serve as a member of the Federal Reserve Board of Governors, he will step down on February 28.
He said the reason for his departure was “due to an argument.[s] Out of place,” the statement said.
This comes as appointments to US federal regulatory agencies are highly politicized in anticipation of pro-crypto President Trump's inauguration later this month.
The departure of top US banking officials, who have long called for “appropriate safeguards” to be implemented for the digital assets industry, has drawn cheers from some corners of the crypto community.
“Releasing the bar is a huge win,” said Samuel Arms, founder of the Florida Blockchain Business Association. Decrypt. To ensure this, we must clear any Elizabeth Warren and Biden-related nominees [federal government] It goes back to being unbiased for our industry.
As the second-highest official at the Federal Reserve, Barr had supreme authority over the US banking system — a lifeline for some crypto businesses in the US.
Major crypto exchanges rely on banks to facilitate transactions that allow customers to buy and sell digital assets on their platforms.
But in recent years, some companies have been shut out of financial institutions after federal regulators pressured banks to limit their ties to crypto companies.
While it's unclear whether the Federal Reserve is directly pressuring banks to sever ties with digital asset firms, some crypto investors, including Gemini's Patrick Leo, blame the ban on banking operations that have hampered the US crypto industry in recent years.
“The environment for the crypto industry in the US over the past four years has been unsustainable,” Liu said. Decrypt.
“a lot [people in the industry] Government organizations have negatively impacted the “de-banking” of crypto businesses… leading US businesses to avoid working with crypto clients and partners, he added.
The rise of the bar comes after a few weeks of calling. Anti-crypto SEC Chairman Gary Gensler And Commissioner Jaime Lizaraga Last November, it was announced that pro-Crito pro-Crito President Donald Trump would step down when he took office.
After the members of the Senate banking committee will come soon A meeting last month to re-appoint Biden-nominated SEC Commissioner Carolyn Crenshaw was canceled. In her post at the agency responsible for overseeing the US crypto industry.
However, regulatory changes by the Federal Reserve and the SEC are only one “piece of the puzzle” that needs to be solved to ensure a bright future for the crypto industry in the US, according to New Stern Assistant Professor Austin Campbell. Decrypt.
Federal agencies such as the Treasury Department, the IRS, and FINCN have significant authority to issue regulations that affect digital asset companies and holders in the United States.
“Getting U.S. banking regulators to embrace technology transitions so that our banking system can use modern technology to join the rest of the world is a big mountain to climb,” Campbell said.
Edited by Sebastian Sinclair.
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