US Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, has sent a formal letter to the Federal Reserve Bank of Kansas City demanding clarity on its decision to grant a limited-purpose master account to Kraken Financial. The letter, addressed to Kansas City Fed President Jeff Schmid, requests a response by April 10. Waters is seeking specifics on what the account allows Kraken to do, which Federal Reserve services it can access, and what conditions or restrictions apply.
Kraken’s banking unit received the limited-purpose master account from the Kansas City Fed earlier this month, a development widely regarded as a significant milestone for the broader crypto industry. Several crypto-linked US companies have spent years pursuing similar accounts with the Fed. The account grants direct access to Fedwire, the Fed’s core payments infrastructure, potentially enabling Kraken to move funds through the same channels used by traditional banks and credit unions.
Waters noted in her letter that the Kansas City Fed’s public announcement withheld specific details about the scope of Kraken’s access, citing the confidentiality of business information submitted by applicants. She argued that transparency is essential to confirm that the approval process was conducted consistently with the law and with impartiality. She also stressed that the process must continue to support a safe and efficient payment system.
Beyond procedural concerns, Waters contends that Kraken’s entry into the Federal Reserve’s payment system raises broader policy, regulatory, and consumer protection questions. She wrote that innovations in payments, digital assets, tokenization, and artificial intelligence are rapidly outpacing the statutory frameworks designed to manage risk, promote competition, and protect consumers. In her view, those exercising discretionary authority over access to critical financial infrastructure bear a heightened responsibility given this environment.
Other US crypto firms have also been pursuing Fed master accounts. Custodia Bank, led by Caitlin Long, filed a court petition in late 2025 to renew its application. Crypto platform Anchorage Digital Bank applied for an account last year, and Ripple has pursued one through its Standard Custody & Trust Company. Kraken’s approval may intensify pressure on the Fed to clarify its criteria for evaluating such applications.
Waters has a well-documented record of skepticism toward the crypto sector. Crypto advocacy group Stand With Crypto rates her as “strongly against crypto,” citing five public statements and six votes against crypto-related legislation, including the Digital Asset Market Clarity Act and the GENIUS Act. She also previously called for a hearing with Securities and Exchange Commission Chair Paul Atkins, raising concerns about the agency’s handling of crypto enforcement cases.
Originally reported by CoinTelegraph.
