Nikolas Sargeant
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 a full account of how and why Kraken Financial was granted a limited-purpose master account earlier this month.
In the letter, addressed to Kansas City Fed President Jeff Schmid and requesting a response by April 10, Waters asked which Federal Reserve services Kraken can now access, what conditions or restrictions apply, and what anti-money laundering and consumer protection measures were assessed during the approval process. She argued that the Kansas City Fed's public announcement disclosed no specific information about Kraken's access due to applicant confidentiality, and that transparency is essential to ensure the approval process was conducted lawfully, impartially, and in a manner consistent with a safe and efficient payment system.
Kraken's Wyoming-chartered banking unit became the first crypto-native company to secure a Federal Reserve master account, granting it direct access to Fedwire, the same core payments infrastructure used by banks and credit unions. The milestone came after years of crypto-linked companies pursuing Fed master accounts, including Caitlin Long's Custodia Bank, Anchorage Digital Bank, and Ripple through its Standard Custody & Trust Company.
Waters framed her concerns broadly, arguing that innovations in digital assets, payments, and AI are outpacing the regulatory frameworks designed to manage risk and protect consumers, and that those exercising discretionary authority over critical financial infrastructure bear a heightened responsibility as a result.
The letter is consistent with Waters' established position on crypto. Advocacy group Stand With Crypto rates her as "strongly against crypto," citing five public statements and six votes against crypto legislation including the GENIUS Act and the Digital Asset Market Clarity Act.
