Federal Reserve's Michael Barr Discusses Decentralization And Crypto Regulation

According to BlockBeats, on February 19, FOX Business journalist Eleanor Terrett reported that outgoing Federal Reserve official Michael Barr spoke at the Council on Foreign Relations in New York about banking decentralization and cryptocurrency regulation. Barr stated that the Federal Reserve aims to maintain a 'neutral' stance on these issues. The Fed expects institutions to operate safely and soundly while adhering to consumer protection laws, anti-money laundering regulations, and anti-terrorism financing laws. If these conditions are met, the Fed has no objections. Barr highlighted a new regulatory plan by the Federal Reserve designed to oversee institutions in this sector, ensuring they possess the necessary expertise for proper execution. He noted that while some institutions are successful in this regard, others fail due to issues related to anti-money laundering, the Bank Secrecy Act, or an inability to meet customer liquidity needs, leading to bankruptcy. For Barr, this is a matter of straightforward risk management and banking practices. Success is achievable if done correctly, but failure to adhere to these standards means institutions should not engage in such activities. Additionally, Barr mentioned that he has never personally witnessed evidence of customers being denied banking services due to their political views.