Lawmaker Questions Kansas City Fed’s Recent Approval of Special Account for Kraken
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Kraken Financial (Wyoming-chartered SPDI) became the first crypto firm granted direct access to the Federal Reserve payment system, marking a major adoption milestone for crypto access to Fed rails. Rep. Maxine Waters and other lawmakers are questioning the Kansas City Fed's approval and whether Kraken can use core services like Fedwire and FedACH, citing no clear legal basis for a so-called "limited purpose account". The ruling expands on‑ramp potential for CEXs/DeFi and institutional integration but introduces regulatory uncertainty that could affect market confidence and adoption.
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- Maxine Waters questions the Fed’s approval of Kraken’s access to the U.S. payment system.
- Kraken became the first crypto firm to gain direct access to the Federal Reserve’s payment system.
- Lawmakers are seeking clarity on whether Kraken can use core services like Fedwire and FedACH.
US lawmaker Maxine Waters has raised questions over the Kansas City Federal Reserve’s decision to approve a special account for Kraken Financial.
The approval allows Kraken, a Wyoming-chartered Special Purpose Depository Institution, to access the Federal Reserve’s payment system. It marks the first time a crypto firm has received this level of access.
Waters argues the decision may lack a clear legal basis. The term “limited purpose account” does not appear in federal law or in the Federal Reserve’s own account access guidelines.
Scope of Access Remains Unclear
…Read The Full Article Lawmaker Questions Kansas City Fed’s Recent Approval of Special Account for Kraken On Coin Edition.
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