U.S. Representative Maxine Waters (D-CA), the ranking Democrat on the House Financial Services Committee, has formally demanded that the Federal Reserve Bank of Kansas City explain its legal basis for approving a Federal Reserve master account for Payward Financial, the entity doing business as Kraken Financial, marking the first time a crypto exchange has secured direct access to the Fed’s core payment infrastructure. In a letter transmitted Thursday to Kansas City Fed President Jeff Schmid, Waters requ ...

House Financial Services Committee ranking Democrat Rep. Maxine Waters sent a formal letter Thursday to Federal Reserve Bank of Kansas City President Jeff Schmid, demanding answers on why Kraken’s banking subsidiary was granted a Federal Reserve master account, and what that access actually means in practice. Waters set an April 10 response deadline, asking Schmid to detail which Fed services Kraken can access, what restrictions apply, and what anti-money laundering and consumer protection measures were ...