Representative Maxine Waters, the top Democrat on the House Financial Services Committee, has asked the Federal Reserve Bank of Kansas City for detailed information about its decision to grant Kraken Financial a limited-purpose master account.
In a letter sent Thursday, Waters asked Kansas City Fed President Jeff Schmid to respond by April 10 and to explain what Kraken’s approval entails in practice: which Federal Reserve services the unit can access, any conditions or restrictions attached, and what anti-money-laundering and consumer-protection safeguards were evaluated before approval.
Kraken’s banking arm was granted the limited-purpose master account earlier this month, a move many saw as a milestone for the crypto industry after years of crypto-linked firms seeking direct Fed access. The account can provide direct access to Fedwire, the Federal Reserve’s core payments network, enabling Kraken to move funds on the same rails used by banks and credit unions.
Waters noted the Kansas City Fed’s announcement withheld specific details about Kraken’s access “due to the confidentiality of business information provided by applicants,” and wrote that clarity is needed to ensure the Fed’s account-access decisions comply with law, are impartial, and preserve a safe, efficient payment system.
She also argued Kraken’s entry into the Fed’s payment system raises significant policy, regulatory and consumer-protection questions that require full transparency and a clear legal basis. Waters warned that rapid innovations in payments, digital assets, tokenization and artificial intelligence are outpacing statutory frameworks designed to mitigate risk, promote competition, and protect consumers, and said those who exercise discretionary authority over critical financial infrastructure must meet high standards.
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 its 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 previously called for congressional hearings with Securities and Exchange Commission leadership over concerns about the agency’s handling of crypto enforcement.
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