Former Ripple Advisor Gets Nominated By Biden As US Fed Regulator

April 15, 2022 2:05 pm

Michael Barr, known for his former position as an advisor for Ripple, just recently got nominated by President Biden for the role as a top US Federal Reserve regulator.

Barr’s background in digital assets like cryptocurrency and his time serving for Ripple could potentially mean more pro-crypto regulation in the future.

The role that Barr has specifically been nominated for is the role of vice-chairman for supervision, but the nomination is expected to be a rocky road as Biden’s previous nominations have failed Senate approval.

Barr was hired by Ripple Labs back in 2015 and is considered to potentially have insider crypto knowledge where he worked on cutting-edge innovation in the financial payments space.

CoinDesk reports:

It was that industry experience that previously soured progressive groups on Barr, who had been an early Biden administration favorite to run the Office of the Comptroller of the Currency.

That candidacy was derailed by opposition from the left, and the post remains vacant after some Senators vehemently opposed another candidate.

In the evenly-divided Senate, Republicans have campaigned vigorously against some of Biden’s regulatory nominations, leaving Barr’s eventual confirmation in some question.

Though he’s previously won bipartisan support in that chamber, he could be on a more difficult road this time.

If he’s confirmed, he’ll occupy a leadership role in the multi-agency efforts already underway to regulate stable coins and to consider further guardrails for the rest of the crypto industry.

Whether the role that Barr is nominated for will potentially shape how central bank digital currencies are developed within the US is also still unknown at this point.

Ripple has been acting for an advisor for the creation of CDBCs for regions within the European Union due to its extensive knowledge in the design of such stable coins.

Despite that, Ripple has not been as accepted within the US for such endeavors as indicated by its currently lawsuit against the SEC which has been considered a temporary setback for Ripple and XRP.

Several online sources have indicated that the role of central bank digital currencies may come sooner than we think so any representation  from the crypto community in that area would be a positive thing.

Yahoo concludes:

Barr is generally considered a consumer-friendly advocate for aggressive financial oversight, with deep experience in financial-inclusion efforts.

He co-authored the book “Insufficient Funds,” about the finances of poor families in Detroit, and wrote “No Slack: The Financial Lives of Low-Income Americans.”

The Treasury veteran also helped craft the same Dodd-Frank Act that established the vice chairman role that Barr is seeking.

In a statement, Senate Banking Committee Sherrod Brown said, “I will support this key nominee, and I strongly urge my Republican colleagues to abandon their old playbook of personal attacks and demagoguery and put Americans and their pocketbooks first.”

Regulatory bodies within the United States often have different perspectives on crypto as members of Congress have previously put pressure on the SEC regarding its recent regulatory stance on crypto which could stifle innovation.

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