Congresswoman Seeks Clarity on Fed Approval for Crypto Exchange Kraken

Representative Maxine Waters has sent a letter to the Federal Reserve Bank of Kansas City, seeking clarification on their decision to grant cryptocurrency exchange Kraken access to Fedwire.

The approval allows Kraken to directly settle dollar transactions with the nation's 'critical' financial infrastructure, raising concerns about transparency and risk management. In her letter, Waters expressed her apprehensions about this development, stating that access to the nation's critical financial infrastructure should not be granted without complete transparency, a clear legal basis, and assurance that risks are being adequately managed.

The Kansas City Fed's announcement did not disclose specific information about Kraken's access to the Federal Reserve's range of financial services, citing the confidentiality of business information. Waters also pointed out that neither statute nor the Federal Reserve Board's Account Access Guidelines refer to a 'limited purpose account' type.