Maxine Waters Presses Fed Over Kraken Master Account

Congresswoman seeks details on legal basis and scope of limited-purpose account approval.

Mar. 27, 2026 at 9:48am

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Representative Maxine Waters, a senior House Democrat, has sent a letter to the Federal Reserve Bank of Kansas City demanding details about its approval of a master account for crypto firm Kraken Financial. Waters questioned the legal authority for granting the limited-purpose account and requested information on Kraken's access to Federal Reserve payment services, overdraft limits, balance caps, and supervisory conditions.

Why it matters

The approval of a master account for a crypto firm raises questions about the Federal Reserve's oversight and access policies for critical payment infrastructure. Waters is seeking transparency around the decision-making process and potential implications for consumer protection and anti-money laundering efforts.

The details

In her letter, Waters asked whether Kraken can access FedACH, Fedwire, or cash services through the limited-purpose account. She also requested details on overdraft limits, balance caps, and supervisory requirements tied to the account. The Kansas City Fed declined to disclose specific account details, citing confidentiality rules. Waters argued that transparency must guide decisions involving access to Federal Reserve payment rails.

  • On March 27, 2026, Representative Maxine Waters sent a letter to the Federal Reserve Bank of Kansas City.
  • Waters set an April 10, 2026 deadline for the Kansas City Fed to provide the requested information.

The players

Maxine Waters

A senior House Democrat and ranking member of the House Financial Services Committee.

Jeff Schmid

The president of the Federal Reserve Bank of Kansas City.

Kraken Financial

A cryptocurrency firm that was granted a limited-purpose master account by the Federal Reserve Bank of Kansas City.

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What they’re saying

“Answers to these questions are critical to ensuring that access decisions are lawful and impartial.”

— Maxine Waters, U.S. Representative

“The convergence of crypto infrastructure and sovereign financial rails.”

— Arjun Sethi, Kraken Co-CEO

What’s next

The Federal Reserve Bank of Kansas City has until April 10, 2026 to provide Representative Waters with the requested information about the legal basis and scope of the limited-purpose master account granted to Kraken Financial.

The takeaway

This case highlights the ongoing debate over crypto firms' access to critical financial infrastructure and the need for clear, transparent policies governing such decisions. The approval of Kraken's master account raises questions about the Federal Reserve's oversight and the potential implications for consumer protection and anti-money laundering efforts.