US Lawmaker Wants Answers About Kraken’s Fed Master Account Approval

US Consultant Maxine Waters, the rating Democrat on the Home Monetary Companies Committee, is demanding solutions from the Federal Reserve Financial institution of Kansas Metropolis over the approval of Kraken Monetary’s limited-purpose grasp account.

In a letter Thursday, Waters asked Kansas Metropolis Fed President Jeff Schmid to reply by April 10, outlining what Kraken’s approval means in follow; which Federal Reserve providers it could possibly entry; the situations or restrictions that apply and what anti-money laundering and client safety measures had been thought of.

Kraken’s banking unit was granted a limited-purpose master account by the Federal Reserve Financial institution of Kansas Metropolis earlier this month. It was seen as a milestone for the crypto trade as a number of crypto-linked US firms have been pursuing a grasp account with the Fed for years. 

The account gives direct entry to Fedwire, the Fed’s core funds system, probably permitting Kraken to maneuver cash on the identical rails utilized by banks and credit score unions. 

“The Kansas Metropolis Fed’s announcement doesn’t disclose particular details about Kraken’s entry to the vary of Federal Reserve monetary providers because of the confidentiality of enterprise info supplied by candidates,” Waters wrote within the letter.

“Answers to those questions are essential to making sure that the method of approving Federal Reserve Checking account entry is performed persistently with the regulation, with impartiality, and in a way that continues to foster a secure and environment friendly cost system,” she added. 

Full transparency required to mitigate dangers, Waters argues

Waters additionally argued that Kraken’s entry to the Federal Reserve’s cost system raises coverage, regulatory and client safety issues. Because of this, she mentioned full transparency and clear authorized grounding are required to make sure any dangers are correctly managed.

“Improvements in funds, digital belongings, tokenization, and even synthetic intelligence are quickly outpacing statutory frameworks developed to mitigate danger, promote competitors, and shield customers in a standard monetary surroundings,” Waters wrote.

“Given this surroundings, a lot is required of those that train discretionary authority over secure entry to, and operation of, our nation’s essential monetary infrastructure,” she added.

Associated: SEC is no longer a ‘cop on the beat‘ on crypto, says US lawmaker

US crypto firms which were pursuing Fed grasp accounts embrace Caitlin Long’s Custodia Bank, which filed a court docket petition in late 2025 to resume its bid.

Crypto platform Anchorage Digital Financial institution additionally utilized for an account final 12 months and Ripple has utilized via its Commonplace Custody & Belief Firm.

Waters is classed as “strongly towards crypto” by advocacy group

Crypto advocacy group Stand With Crypto has a scorecard for US politicians on how supportive they’re of crypto primarily based on public statements and voting conduct.

Waters is listed by the group as “strongly towards crypto,” primarily based on 5 statements and 6 votes towards crypto laws, together with the Digital Asset Market Readability Act and the GENIUS Act.

She additionally known as for a listening to with Securities and Trade Fee Chair Paul Atkins final 12 months, citing concerns about the agency’s dismissal of crypto enforcement circumstances.

Journal: How crypto laws changed in 2025 — and how they’ll change in 2026