Kraken Wins Federal Reserve Master Account as U.S. Banks Challenge Approval and Stablecoin Rules

Kraken has secured a master account at the Federal Reserve Bank of Kansas City, a move the crypto exchange says will let it access the same payment infrastructure used by thousands of banks and credit unions, DL News reports. Banking lobbying groups, including the Bank Policy Institute, voiced deep concern over what they called a "limited-purpose" or "streamlined" approval, arguing the Kansas City Fed bypassed required public consultation and lacked transparency in the process. Kraken co-CEO Arjun Sethi said the account will help the firm more efficiently handle transactions for large institutional clients and marks the integration of crypto infrastructure with the U.S. financial system, though the company will not receive the full suite of central bank services such as interest on reserves. The decision comes as the crypto sector, backed by pro-crypto actions from President Donald Trump and legislation like the GENIUS Act, clashes with the $23 trillion U.S. banking industry over issues including a stablecoin interest "loophole" and ongoing negotiations around the CLARITY Act regulatory framework, according to the report.