TD Cowen: Barr's resignation is not a victory for big banks, and regulatory deregulation may not make much progress this year

Odaily reports that Jaret Seiberg of the TD Cowen Washington Research Group said that the resignation of the Federal Reserve's Vice Chair for Supervision Barr "is not as much of a victory for the big banks as it may appear on the surface." Seiberg said in a report on Monday: "The Democrats will retain their majority on the Federal Reserve Board until early 2026, and given the need to confirm new regulatory officials, we have a hard time seeing much progress on deregulation this year." Barr had called for the regulation of stablecoins over the past year, stating that stablecoins "borrow the trust of central banks." "...The Federal Reserve is very keen to ensure that any stablecoin issuance operates within an appropriate federal prudential regulatory framework so that they do not threaten financial stability or the integrity of the payment system," Barr said at a conference in Washington, D.C. in October 2023. For years, lawmakers have been drafting bills to regulate stablecoins, but the crux of the matter is how to allocate regulatory power between the states and the federal government. (The Block) Yesterday's news, Federal Reserve Vice Chair for Supervision Barr announced that he will resign from his position on February 28, 2025. The Federal Reserve stated that Barr will continue to serve as a Federal Reserve Governor, but will not participate in major rulemaking work until his successor in the Vice Chair position is determined. Barr said in the statement that the "controversy" over his position could distract the Federal Reserve's focus.