Democratic Lawmakers Write to Kansas City Fed, Demand Details on Approval of Kraken's Access to Federal Reserve Services

Odaily News: Maxine Waters, the top Democrat on the U.S. House Financial Services Committee, has sent a letter to Jeff Schmid, President of the Federal Reserve Bank of Kansas City. She is demanding a detailed explanation regarding the bank's approval for cryptocurrency exchange Kraken (Payward Financial) to open a "limited-purpose account" and gain access to the Federal Reserve's payment system. She has requested a written response by April 10, 2026.

In the letter, Maxine Waters requested disclosure of the specific services Kraken can access, including FedACH, FedCash, and Fedwire securities services. She also asked for clarification on the account's restrictions and risk management requirements, and inquired whether the approval was reviewed by the Federal Reserve Board of Governors or other government officials, and if there was any external influence. She further pointed out that the "limited-purpose account" lacks a clear basis in current regulations and the Federal Reserve's account access guidelines, which could raise concerns regarding policy, regulation, and consumer protection.