Rep. Waters presses Kansas City Fed on approving Kraken’s master account

U.S. Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, has sent a letter to Kansas City Fed President Jeff Schmid questioning the approval of a "limited purpose account" for Payward Financial, operating as Kraken Financial. Waters expressed concerns over the legal basis and transparency of the account, noting that neither federal statute nor the Federal Reserve Board's Account Access Guidelines reference this type of account. The arrangement grants Kraken access to core payment rails for high-value dollar settlement, which Kraken hailed as a major convergence. Waters requested clarification on the scope of access (e.g., FedACH, Fedwire), associated limits, and coordination with the Federal Reserve Board, setting an April 10 deadline for a response. This scrutiny follows backlash from traditional banking groups who are concerned the approval occurred before the Fed finalized a broader framework for 'skinny' master accounts.

(Source：The Block)