Federal Reserve Vice Chair Michael Barr pushed back on claims that the crypto industry is being shut out of the banking sector, stating that the central bank does not discourage the activity.
Barr’s comments were made during an event at Georgetown Law, where he emphasized that the Fed aims to provide clear guidance and “guardrails” for banks engaging in crypto activities. He clarified that the Fed does not tell banks to work with or without specific clients.
The topic of crypto debanking has gained attention under the new Trump administration, with industry leaders and lawmakers grappling with challenges faced by crypto firms when trying to establish and maintain US accounts.
Barr’s statements follow those from Federal Reserve Chair Jerome Powell, who called for a “fresh look” at debanking during a Senate Banking Committee hearing earlier this month.
The Fed prioritizes compliance with consumer and terrorism financing protections, according to Barr. He will continue to serve on the Federal Reserve Board of Governors despite stepping down as Vice Chair of Supervision later this month.
Source: https://www.theblock.co/post/342512/feds-michael-barr-responds-crypto-debanking-concerns-central-bank