ICBA Urges Kansas City Fed to Reassess Kraken's Limited-Purpose Fed Account

Odaily Planet Daily: The community banking organization ICBA has sent a letter to the Kansas City Federal Reserve, requesting a reassessment of Kraken Financial's compliance before its one-year limited-purpose Fed account expires, and considering further restrictions or termination. ICBA argues that the account has failed to adequately address anti-money laundering and fraud risks associated with crypto-related entities, citing FBI data that in 2025, there were approximately 13,500 crypto ATM-related complaints, resulting in losses of around $389 million. Kraken obtained the account in March this year, granting it access to the Federal Reserve's core payment system, Fedwire. The Kansas City Fed holds discretionary authority over the account's conditions and renewal but has not yet initiated termination proceedings.