Kraken obtained approval for a limited ‘master account’ from the Federal Reserve Bank of Kansas City that gives the firm access to the Federal Reserve’s payment rails. Kraken would be the first firm to gain direct access to Federal Reserve payment services, and Maxine Waters, the ranking Democrat on the House Financial Services Committee, sent a letter to Jeff Schmid of the Kansas City Fed regarding the approval. The article was published on March 26, 2026.
Maxine Waters, the ranking Democrat on the House Financial Services Committee, sent a letter to Jeff Schmid, president of the Federal Reserve Bank of Kansas City, questioning the approval of Kraken’s limited ‘master account’ and seeking information about the decision. The letter raised concerns that the approval’s legal and policy basis was unclear because “neither statute nor the Federal Reserve Board’s Account Access Guidelines refer to a ‘limited purpose account’ type,” and it identified that absence as a central issue. Waters asked for detail on how the approval was reached and which terms govern the account’s scope and operations. She requested that the bank provide additional information about the process and the considerations informing the approval.
Waters specifically asked for clarification of the terms and the approval process. She requested additional information about the considerations that informed the bank’s decision.
The Federal Reserve’s current account access framework does not explicitly reference a limited-purpose or ‘limited master’ account type; neither statute nor the Federal Reserve Board’s Account Access Guidelines refer to this account type. The Federal Reserve Board has an ongoing effort to write rules for a ‘skinny’ master account for such businesses, and that rule-writing process is in the early stages. The Kansas City Fed is one of 12 regional Federal Reserve banks nationwide.
Kraken obtained a limited ‘master account’ from the Federal Reserve Bank of Kansas City. The account gives Kraken full-fledged access to the same payment rails used by much of the traditional financial system. Kraken would be the first firm to gain direct access to Federal Reserve payment services. The Kansas City Fed said it had “received the letter and will review it”.
The Kansas City Fed’s decision and the Federal Reserve Board’s ongoing rule-writing are the cited elements of the current regulatory context. The facts presented are drawn from the reported approval and the stated status of Federal Reserve rulemaking.
Stablecoins are entering their third phase of evolution — the institutionalization era — and are becoming embedded into core financial infrastructure. RLUSD surpassed $1 billion in market capitalization within its first year. North America leads in regulatory frameworks and institutional distribution for stablecoins. The summary draws on the reported facts in the article.
The points above present the reported market phase, a noted market-cap milestone, and regional regulatory leadership. No additional facts are included beyond those reported.
Kraken’s approval for a limited ‘master account’ from the Federal Reserve Bank of Kansas City, which gives the firm direct access to Federal Reserve payment rails, was met with formal questions from Maxine Waters, who sent a letter to Jeff Schmid, and with a reply from the Kansas City Fed that it had “received the letter and will review it”.
The approval sits against a Federal Reserve Board effort that is in the early stages of writing rules for a ‘skinny’ master account, and it occurs as stablecoins enter an institutionalization phase during which RLUSD surpassed $1 billion in market capitalization within its first year.
