TD Cowen: Federal Reserve Vice Chair for Supervision Barr Resigns, Uncertain Outlook for Stablecoin Regulation

ChainCatcher news, Jaret Seiberg of TD Cowen Washington Research Group stated that the resignation of Federal Reserve Vice Chair Barr "is not as much of a victory for big banks as it appears on the surface."
Seiberg noted in a report on Monday: "The Democrats will retain their majority on the Federal Reserve Board until early 2026, and given the need to confirm new regulatory officials, it is hard to see significant progress on regulatory easing this year."

Barr has called for regulation of stablecoins over the past year and stated that stablecoins "borrow the trust of central banks." "The Federal Reserve is very eager to ensure that any issuance of stablecoins operates within an appropriate federal prudential regulatory framework so that they do not threaten financial stability or the integrity of the payment system," Barr said at a conference in Washington, D.C. in October 2023.

For years, lawmakers have been working on legislation to regulate stablecoins, but the crux of the issue lies in how to allocate regulatory authority between state and federal levels. (The Block)

In news from yesterday, Federal Reserve's Barr announced that he will resign from the position of Vice Chair for Supervision on February 28, 2025. The Federal Reserve's statement indicated that Barr will continue to serve as a governor of the Federal Reserve but does not intend to engage in significant rulemaking until a successor to the vice chair position is determined. Barr stated in the announcement that the "controversy" surrounding his position could distract the Federal Reserve's focus.