Fed’s Top Banking Regulator Defends Crypto, Fintech Supervision
**Fed's Top Banking Regulator Defends Crypto, Fintech Supervision**
By Yueqi Yang
6 hours ago
Source: The Information
The Federal Reserve's outgoing banking regulator Michael Barr defended its approach in supervising banks' activities in crypto, amid growing calls from the crypto and banking industries for an overhaul of regulatory guidance on crypto.
Barr said banks provide material and important services to the crypto industry by allowing companies to exchange dollars to settle crypto transactions, and the Fed monitors that activity from "a safety and soundness and financial stability lens." The Fed, however, doesn't tell banks whether to serve a customer or not, he said.
Crypto advocates said federal banking regulators' current guidance caused "de-banking" of crypto firms and deterred banks from offering crypto-related services themselves. Barr said the Fed set up a dedicated program in 2023 to supervise banks' involvement in crypto and fintech, which helps provide clarity and responsible innovation. Currently, there are 22 firms under the supervision of the "novel activities program."