On January 6, 2025, Michael Barr announced his resignation as Vice Chair for Supervision of the Federal Reserve, effective February 28, or earlier if a successor is appointed. This development follows increasing scrutiny over his role in 'Operation Chokepoint 2.0,' a reported federal initiative aimed at limiting banking services for crypto companies.
Barr's departure has sparked optimism within the crypto community, as industry leaders have criticized his influence on banks' reluctance to engage with digital asset firms. Senator Cynthia Lummis labeled Barr a failure in his duties, while Custodia Bank CEO Caitlin Long dubbed him 'THE FED'S DEBANKER-IN-CHIEF.'
More than half of the current administration's financial leaders have resigned or announced their departures, which some see as a shift in regulatory attitudes toward cryptocurrencies. Barr's tenure, which began in July 2022, was marked by his advocacy for stablecoin regulation and oversight of central bank digital currency research.
This resignation comes amid ongoing investigations into the impact of Operation Chokepoint 2.0, with Coinbase recently obtaining unredacted FDIC files related to the initiative. Former prosecutor John Deaton has called for an investigation into these regulatory actions, warning of the potential consequences for innovation and competition in the crypto sector.