Maxine Waters Demands Clarity on Kraken Master Account Approval by Kansas City Fed

US Representative Maxine Waters has submitted an inquiry to the Federal Reserve Bank of Kansas City (Kansas City Fed) regarding its approval of a master account for cryptocurrency company Kraken Financial.

The account, which will grant access to Federal Reserve payment networks, was approved without providing specific details about the services included. Waters' request seeks clarification on regulatory oversight and compliance assessments related to the account's establishment.

According to Waters' letter, the Kansas City Fed has refused to provide detailed information about the account, citing confidentiality policies. However, the congresswoman emphasized that transparency is essential for ensuring legitimate and equitable access determinations.

The Federal Reserve continues to develop a comprehensive policy framework for restricted master account access, which may emerge before the end of the year. Multiple cryptocurrency companies have sought Federal Reserve account access in recent years, with some still awaiting approval or resubmitting their applications.