Michael Barr, U.S. Federal Reserve Vice-Chair for Supervision, resigned due to criticisms regarding his influence on crypto banking services. His proposals for stringent regulations on banks holding crypto-assets faced significant opposition from various industry leaders and lawmakers. This move came ahead of the new administration’s potential re-evaluation of crypto policies.

Barr’s tenure was marked by allegations of overreach, potentially hindering the U.S. Cryptocurrency sector’s growth. Notably, Republican lawmakers accused him of inhibiting virtual currency innovations, with some asserting that his policies led to the U.S. Being considered a secondary market for digital assets. His resignation reflects ongoing tensions in U.S. Crypto regulation.