Representative Maxine Waters, the top Democrat on the House Financial Services Committee, has asked the Federal Reserve Bank of Kansas City for fuller disclosure about its decision to grant Kraken Financial a limited-purpose master account.
In a letter sent Thursday, Waters requested that Kansas City Fed President Jeff Schmid respond by April 10, and laid out specific questions about what the approval actually permits: which Federal Reserve services the Kraken unit may use, any conditions or restrictions attached to the account, and what anti-money-laundering and consumer-protection safeguards the Fed reviewed before granting access.
Kraken Financial’s limited-purpose master account, approved earlier this month, gives the firm direct access to Fedwire, the Federal Reserve’s primary payments network — the same rails used by banks and credit unions. The Kansas City Fed’s announcement did not disclose detailed terms, citing “the confidentiality of business information provided by applicants,” which Waters said makes public clarity essential.
Waters argued transparency is needed so the Fed’s account-access decisions can be assessed for legal compliance, impartiality, and their impact on the safety and efficiency of the U.S. payment system. She also said Kraken’s entry into Fed payment infrastructure raises broader policy, regulatory and consumer-protection questions that require a clear legal basis and full public explanation.
The lawmaker warned that fast-moving developments in payments, digital assets, tokenization and artificial intelligence are outpacing existing statutory frameworks meant to limit risk, preserve competition and protect consumers. She said officials who exercise discretionary authority over critical financial infrastructure must meet high standards of accountability.
Other U.S. crypto firms that have sought Fed master accounts include Caitlin Long’s Custodia Bank, which filed a court petition in late 2025 to renew its bid; Anchorage Digital Bank, which applied last year; and Ripple, which submitted an application through Standard Custody & Trust Company.
Crypto advocacy group Stand With Crypto lists Waters as “strongly against crypto,” citing five public statements and six votes opposed to crypto-related legislation, including the Digital Asset Market Clarity Act and the GENIUS Act. Waters has also previously called for congressional hearings with Securities and Exchange Commission leadership over concerns about the agency’s approach to crypto enforcement.
The reporting follows Cointelegraph’s editorial policy; readers are encouraged to verify information independently.
