US lawmakers question Kansas City Fed's request to disclose details of Kraken's main account approval

According to Cointelegraph, Maxine Waters, a senior Democrat on the U.S. House Financial Services Committee, sent a letter to Jeff Schmid, president of the Federal Reserve Bank of Kansas City, asking for an explanation of Kraken Financial's approval of a limited purpose master account. Waters asked the Kansas City Fed to specify by April 10 the specific permissions for Kraken accounts, accessible federal services, additional conditions or restrictions, and the anti-money laundering and consumer protection measures considered. Kraken's banking department obtained the account earlier this month, with direct access to Fedwire, the Fed's core payment system. Waters pointed out that innovation in payments, digital assets, tokenization and artificial intelligence is rapidly moving beyond existing statutory frameworks and requires transparency in access to critical financial infrastructure. According to a rating from the crypto advocacy group StandWithCrypto, Waters is listed as a congressman who is "strongly opposed to cryptocurrencies."