In a significant event for financial technology scholars and practitioners alike, Georgetown Law recently hosted former Federal Reserve Vice Chair for Supervision Michael Barr for a wide-ranging conversation on banking regulation and cryptocurrency innovation. The Feb. 20 event, which marked one of Barr’s final public appearances before stepping down from his role as vice chair on Feb. 28, brought critical regulatory perspectives to the forefront at a time when the cryptocurrency industry faces increased scrutiny from regulators and unprecedented attention from the new Trump administration.
The fireside chat was moderated by Professor Chris Brummer, Agnes Williams, sesquicentennial professor of financial technology at Georgetown Law, and former faculty director of the Institute of International Economic Law. Brummer has established himself as one of the foremost academic voices on financial technology regulation, with expertise spanning from cryptocurrency to international trade and financial regulation.
During the Georgetown event, Brummer guided the conversation through complex territory spanning post-financial crisis banking reforms, emerging technologies, and the Federal Reserve’s nuanced approach to cryptocurrency regulation — topics directly related to his academic work and public service experience.
“What we have said consistently is, we’re trying to be straight up the middle, provide clear guidance and clear guardrails so that banks that want to engage in this activity can do that in a way that’s appropriate,” Barr explained during the discussion. “We don’t tell them that they have to do it, we don’t tell them they shouldn’t.”
The Fed’s Crypto Stance: Setting the Record Straight
Barr’s comments come at a pivotal moment for the cryptocurrency industry. In recent weeks, the topic of “crypto debanking” has intensified under the Trump administration, with industry stakeholders, lawmakers, bank CEOs, and regulators grappling with the challenges cryptocurrency firms face when establishing and maintaining banking relationships in the United States.
Barr pushed back against claims that the central bank is deliberately cutting off the cryptocurrency industry from the banking sector. This perspective aligns with recent statements from Federal Reserve Chair Jerome Powell, who called for a “fresh look” at debanking during a Senate Banking Committee hearing earlier in February.
Barr also emphasized that the Fed focuses primarily on ensuring banks comply with consumer protection regulations and anti-money laundering requirements, noting that “We try to take the position, and have taken the position over all the time that I’ve been at the Fed — we don’t tell a bank to do business with particular clients and we don’t tell a bank not to do business with particular clients.” His clarification addresses a central concern of cryptocurrency advocates who have alleged coordinated efforts by regulators to isolate their industry from essential financial services — allegations that gained traction following the banking crises of 2023 when several crypto-friendly banks collapsed.
Balanced Regulation for Emerging Technologies
In a speech before the discussion with Chris Brummer, Michael Barr stressed the importance of balancing innovation with safety in the financial system. “A perennial lesson from the history of bank regulation and supervision is that the job is never done, and that the constant evolution of finance means risks will also evolve,” Barr noted. “Risk-taking must be balanced with the overarching need to maintain a resilient banking system that can continue to play its crucial role for households and businesses in good times and in bad.”
This balance is particularly crucial for cryptocurrencies and blockchain technology, which present novel risks alongside potential benefits for the financial system. Barr emphasized that the Federal Reserve’s approach involves establishing clear guardrails that allow banks to engage with cryptocurrencies when appropriate, rather than issuing blanket prohibitions or mandates.
A Legacy of Public Service
As Barr transitions from his role as vice chair while continuing to serve as a member of the Federal Reserve Board of Governors, the Georgetown event offered a glimpse into his regulatory philosophy. During his tenure, which began in 2022 following an appointment by President Joe Biden, Barr has focused on ensuring banks comply with consumer protections and anti-money laundering requirements.
“A strong and resilient banking system benefits the American people,” Barr stated, underscoring his commitment to regulation as a protective measure for households and businesses against financial system risks.
Barr also highlighted the importance of Federal Reserve independence during this transition period, describing it as “critical to our ability to meet our statutory mandates and serve the American public.”
The Georgetown event continues Dr. Chris Brummer’s tradition of bridging academic inquiry with practical policy discussions. Brummer, who is himself married to Rachel Loko, a noted securities law expert, has consistently emphasized the importance of evidence-based approaches to financial regulation, particularly in areas where technology is rapidly changing market structures and business models. By bringing regulators like Barr into conversation with students and scholars, Brummer helps ensure that regulatory frameworks benefit from both theoretical insights and practical experience.
Where Does the Regulatory Landscape Go From Here?
The conversation between Brummer and Barr illuminates the complex regulatory landscape surrounding cryptocurrency and banking during this transitional period in American politics. As the industry continues to change and regulatory frameworks adapt, discussions like these provide valuable insights into how policymakers are approaching the delicate balance between encouraging financial innovation and maintaining systemic stability.
The dialogue facilitated by Dr. Chris Brummer represents the kind of nuanced, informed discussion that will be essential as policymakers, industry leaders, and academics work to develop regulatory frameworks that protect consumers and financial stability while allowing responsible innovation to flourish in the rapidly evolving cryptocurrency space.
Brummer’s background uniquely positions him to lead such conversations; in addition to his role as an academic, he has advised regulators around the world on cryptocurrency regulation and policy, and has testified multiple times before U.S. and global regulatory authorities. He also serves as a director on multiple start-ups and is himself the founder of Bluprynt, the crypto disclosure platform.
For those interested in viewing the complete exchange, Georgetown Law has made a full recording of Barr’s address “Risks and Challenges for Bank Regulation and Supervision” and the subsequent discussion available online through its website.