Waters Questions Kraken's Federal Reserve Account Approval

US Representative Maxine Waters has sent a letter to the Federal Reserve Bank of Kansas City, seeking clarification on the approval process for a limited purpose account granted to crypto exchange Kraken.

The account, which allows Kraken to access Federal Reserve payment services, has raised concerns about consumer protection and regulatory clarity. The approval process has been questioned by Waters, who is likely to return to the chairman seat on the House Financial Services Committee if Democrats regain a majority in this year's elections.

The letter sent by Waters suggests that the approval of the limited purpose account may be on unclear legal footing. She noted that neither statute nor the Federal Reserve Board's Account Access Guidelines refer to a 'limited purpose account' type, and has requested additional information regarding the process and considerations informing the approval.