Maxine Waters questioned the legality of Kraken’s access to the U.S. payment system., 2026/03/27 11:55:02

Member of the U.S. House of Representatives Maxine Waters, affiliated with the Democratic Party, has requested clarification from the Federal Reserve Bank of Kansas City regarding the rationale for granting cryptocurrency exchange Kraken access to the payment services of the Federal Reserve System (FRS).

This pertains to a so-called limited-purpose account established for Payward Financial, operating as Kraken Financial. This account provides access to the Fedwire interbank payment system. Previously, Kraken conducted transactions through intermediary banks, but now it can engage directly with the FRS infrastructure. Notably, the account does not accrue interest on reserves.

In a letter to Jeff Schmid, president of the Federal Reserve Bank of Kansas City, Waters sought the legal basis for opening such an account. She stated that neither federal law nor FRS documents define the term “limited-purpose account,” raising concerns about the legitimacy of the decision.

The congresswoman also pointed out that advancements in payment technologies, digital assets, and related areas are outpacing regulation; however, this should not result in access to critical financial infrastructure without adequate transparency and risk assessment.

Waters inquired whether Kraken’s access extends to FedACH, Fedwire systems, and cash transactions, whether there are restrictions on overdrafts and balances, and if additional regulatory requirements apply. She also asked whether the account opening was coordinated with the FRS and other agencies. A response to her inquiry is expected by April 10.

Previously, Waters criticized U.S. authorities’ decisions regarding the cryptocurrency industry, including opposing leniency towards Binance founder Changpeng Zhao and highlighting the insufficient activity of the U.S. Securities and Exchange Commission (SEC) in regulating crypto companies.