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US Senate confirms Michael Barr as Fed vice chair for supervision

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The United States Senate has confirmed the nomination of regulation professor Michael Barr to develop into the following vice chair for supervision for the Federal Reserve.

In a 66-28 vote on the Senate ground on Wednesday, U.S. lawmakers confirmed Barr as vice chair for supervision of the Federal Reserve System for 4 years, filling the final seat on the seven-member board of governors. Barr, who was on the advisory board of Ripple Labs from 2015 to 2017, additionally served because the Treasury Department’s assistant secretary for monetary establishments underneath former President Barack Obama, and taught programs on monetary regulation on the University of Michigan.

As vice chair for supervision, Barr might be liable for growing coverage suggestions for the Fed in addition to overseeing the supervision and regulation of sure monetary establishments, second solely to chair Jerome Powell. According to the White House, he was “a key architect” of the 2010 Dodd-Frank Act — laws that continues to affect monetary coverage within the United States, and arrange the place of vice chair for supervision.

During his affirmation listening to earlier than the Senate Banking Committee in May, Barr stated revolutionary applied sciences together with cryptocurrencies had “some potential for upside in terms of economic benefit” but additionally “some significant risks.” He referred to as on lawmakers to create a regulatory framework on stablecoins to stop the chance of runs.

In an announcement on his intention to appoint Barr in April, President Joe Biden stated he needed to push the candidate via shortly, possible as a result of the place had been vacant since Fed governor Randal Quarles’ time period led to October 2021. The Senate confirmed Lael Brainard for a four-year time period as Fed vice chair in April, and Powell as Fed chair in May. Barr is the final main candidate put forth by Biden for the Fed to be confirmed.

“Barr has strong support from across the political spectrum — and has been confirmed by the Senate on a bipartisan basis,” stated Biden in April. “He understands that this job is not a partisan one, but one that plays a critical role in regulating our nation’s financial institutions to ensure Americans are treated fairly and to protect the stability of our economy.”

Biden’s first nominee for the Fed vice chair of supervision, Sarah Bloom Raskin, withdrew her title from consideration in March citing “relentless attacks by special interests” and referred to Republican lawmakers who “held hostage” her nomination since February. Wednesday’s Senate vote advised that greater than 15 Republicans joined Democrats in confirming Barr.

Related: How does the Fed impression crypto?

The Fed, along with the Securities and Exchange Commission and the Commodity Futures Trading Commission, oversees lots of the laws masking digital belongings and monetary establishments within the United States. Upon Barr taking his place, a full seven members will sit on the Fed’s board of governors — an occasion which has not occurred in roughly ten years.