U.S. Representative Maxine Waters, top Democrat on the House Financial Services Committee, has formally questioned the Federal Reserve Bank of Kansas City over its approval of a limited “master account” for crypto exchange Kraken.
In a letter to Kansas City Fed President Jeff Schmid, Waters noted that neither federal statute nor the Fed’s own Account Access Guidelines recognize a “limited purpose account” - the classification used to grant Kraken direct access to Federal Reserve payment services.
“The announcement raises questions about the approval because neither statute nor the Federal Reserve Board’s Account Access Guidelines refer to a 'limited purpose account' type,” she wrote, requesting clarification on the approval process and legal justification.
Kraken is the first crypto firm to secure such access, a milestone long sought by digital asset companies aiming to integrate with traditional financial infrastructure. The Kansas City Fed confirmed it received Waters’ letter and will review it.
Waters could become chair of the Financial Services Committee if Democrats win back the House in November’s elections-a scenario currently favored by market odds.