- Congresswoman Maxine Waters sent a letter on March 26, 2026, to Federal Reserve Bank of Kansas City President Jeff Schmid inquiring about Kraken Financial’s master account approval.
- The letter seeks details on the account’s access to Fed services, risk controls, and whether enhanced oversight was applied beyond Wyoming SPDI requirements.
- The approval, granted March 4 for an initial one-year term, marks the first such access for a crypto firm but remains limited in scope.
- Waters emphasized the need for consistent, impartial processes to safeguard the safety and efficiency of the U.S. payment system.
- A response is requested by April 10, 2026.
Congresswoman Maxine Waters is pressing the Federal Reserve for transparency on its decision to grant Kraken Financial a limited-purpose master account, highlighting potential risks to the U.S. payment system.
In the March 26, 2026 letter to Federal Reserve Bank of Kansas City President Jeff Schmid, Waters requested specific information on the approval process, terms granted, and additional safeguards implemented for the crypto-linked entity.
Key questions include the account’s eligibility for services like FedACH and Fedwire, daylight overdraft
privileges, interest on balances, and whether risk controls exceed those required under Wyoming’s Special Purpose Depository Institution (SPDI) framework. The account was approved on March 4, 2026, for an initial one-year term with built-in restrictions.
Waters stressed the importance of consistent application of Federal Reserve policies, stating that answers are “critical to ensuring that the process of approving Federal Reserve Bank account access is conducted consistently with the law, with impartiality, and in a manner that continues to foster a safe and efficient payment system.”
The development comes shortly after Kraken announced the milestone, which represents crypto’s first direct access to core U.S. payment infrastructure, albeit in a restricted form. The inquiry could signal heightened congressional scrutiny on how regulators balance innovation with systemic stability.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should
conduct their own research before making any decisions.
