Michael Barr will step down as vice chair for supervision at the Federal Reserve on February 28, 2025. His resignation is speculated to be influenced by the incoming Trump administration’s potential desire to replace him. Barr will remain a member of the Federal Reserve Board of Governors, focusing on maintaining leadership clarity in financial oversight.

Barr, a longstanding advocate for stablecoin regulation, has voiced concerns on its implications for financial stability. Despite his resignation, the Federal Reserve will hold off on significant rule-making until a successor is confirmed, ensuring a smooth transition and continuity in the regulatory framework. Barr emphasizes stablecoin integration within a secure federal oversight framework.