Kraken Master Account Approval Sparks Congressional Scrutiny

US Representative Maxine Waters has sent a letter to the Federal Reserve Bank of Kansas City, requesting information about the approval of Kraken Financial's limited-purpose master account.

The account provides direct access to Fedwire, the Fed's core payments system, which allows companies to move money on the same rails used by banks and credit unions. This development has significant implications for the crypto industry, as several US-based crypto-linked companies have been pursuing a master account with the Fed for years.

Waters' letter seeks clarification on what Kraken's approval means in practice, which Federal Reserve services it can access, and what conditions or restrictions apply. She also wants to know about the anti-money laundering and consumer protection measures considered during the approval process.