Michael Barr, the Federal Reserve’s Vice Chair for Supervision, has resigned. His departure comes just weeks before the inauguration of a president known for his pro-crypto stance.
A Preemptive Move?
Barr stated his resignation was a preemptive measure to avoid potential conflicts over his position. He believes that any disputes could distract from the Fed’s core mission. He’ll continue serving as a governor.
Barr’s Concerns About Stablecoins
Barr has been a vocal critic of stablecoins, expressing concerns about their potential risks to the financial system. In a previous speech, he highlighted the dangers of these cryptocurrencies, particularly the lack of robust regulation. He warned that the unregulated nature of stablecoins, coupled with their potential for rapid adoption, could lead to significant disruptions and systemic risks. He emphasized the need for strong oversight to prevent a repeat of past financial crises. He compared the situation to the risks associated with bank runs, stressing the need for similar safeguards for stablecoins to protect consumers and the economy.
