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

Odaily reported that the community banking organization ICBA has sent a letter to the Kansas City Federal Reserve, requesting a reassessment of Kraken Financial's compliance before the one-year limited-purpose Fed account expires, and considering further restrictions or termination. ICBA believes 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, with losses totaling about $389 million. Kraken obtained the account this March, 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, and has not yet initiated termination procedures.