Feds vice chair for supervision Michael Barr to step down in February

Michael Barrs resignation is effective from February 28, 2025, but he will continue as governor of the Federal Reserve Board
A Reuters report indicated in December that Barr was seeking legal advice regarding his options should Trump attempt to remove him

Michael Barr, the US Federal Reserves vice chair for supervision, who warned banks about increased liquidity risks regarding accepting crypto deposits, will step down next month.

In a January 6 letter to US President Joe Biden, Barrs resignation is effective from February 28, 2025 or such earlier time as a successor is confirmed. Barr will continue serving as governor of the Federal Reserve Board, which lasts until his term ends in 2026.

There has been some speculation that President-elect Donald Trump will replace Barr once he takes office again on January 20. A Reuters report in late December indicated that Barr was consulting with a law firm over his options against attempts from Trump should he try to remove him.

While nothing was mentioned in his resignation letter, Barr noted in a statement that the risk of a dispute over the position could be a distraction from our mission. In the current environment, Ive determined that I would be more effective in serving the American people from my role as governor.

Taking to X, Caitlin Long, founder and CEO of Custodia Bank, wrote: THE FEDS DEBANKER-IN-CHIEF IS OUT! Michael Barr, the last remaining Biden/Warren appointee who architected #OperationChokePoint2.0 at a federal financial agency, will resign as vice chair for supervision in Feb.

1/ THE FED'S DEBANKER-IN-CHIEF IS OUT! Michael Barr, the last remaining Biden/Warren appointee who architected #OperationChokePoint2.0 at a federal financial agency, will resign as vice chair for supervision in Feb (see @nic__carter's March 2023 map).https://t.co/oB3ml3HUsH pic.twitter.com/C0gABeAUDI
Caitlin Long (@CaitlinLong_) January 6, 2025

Other people within the Operation Choke Point 2.0 diagram Long posted include outgoing US Securities and Exchange Commission (SEC) Chair Gary Gensler, US Massachusetts Senator Elizabeth Warren, Federal Reserve board member Michael Gibson, and Nellie Lang, Under Secretary of the Treasury for Domestic Finance, among others.

Barrs departure comes weeks after Gensler and Commissioner Jaime Lizárraga announced their resignations in November. Both will step down later this month when Trump takes office.

Wyoming Senator Cynthia Lummis said on X that Michael Barr has completely failed to fulfill his duties as Vice Chair for Supervision at every turn, enabling Operation Chokepoint 2.0 and illegally increasing his power at the cost of Wyomings digital asset industry.

Michael Barr has completely failed to fulfill his duties as Vice Chair for Supervision at every turn, enabling Operation Chokepoint 2.0 and illegally increasing his power at the cost of Wyomings digital asset industry. My statement below pic.twitter.com/Pz2Rc0egze
Senator Cynthia Lummis (@SenLummis) January 6, 2025