Congresswoman Waters Questions Fed on Kraken Financial Account Approval
- Congresswoman Maxine Waters sent a letter on March 26 to the Federal Reserve Bank of Kansas City, seeking clarity on the approval process for Kraken Financial’s account.
- The Kansas City Fed granted a limited purpose account to Payward Financial, operating as Kraken Financial, for an initial one-year term with undisclosed conditions.
- Waters’ inquiry includes questions about whether Kraken’s account allows use of FedACH, Check Services, FedCash, or Fedwire Securities Services and how these compare to standard master accounts.
- The letter also probes whether additional examination standards or risk controls were imposed beyond Wyoming’s Special Purpose Depository Institution regime.
The inquiry by Congresswoman Waters highlights concerns over regulatory uncertainty in integrating crypto firms into U.S. payment systems. She emphasizes the need for transparency and consistency in approving Federal Reserve Bank accounts to ensure financial stability and consumer protection.
Waters requests a written response by April 10, underscoring the importance of understanding the terms under which crypto firms like Kraken gain access to core payment infrastructure.(Source)
