US lawmaker questions legality of Kraken's Fed master account

Rep. Maxine Waters, the ranking Democrat on the U.S. House Financial Services Committee, has sent a letter to the Federal Reserve Bank of Kansas City questioning its approval of a master account for crypto exchange Kraken. According to CoinDesk, Waters argued in the letter that the "limited master account," which allows Kraken to directly use the Fed's payment services, has an unclear legal basis. She stated that no such category as a "limited account" exists in law or in guidance from the Fed's Board of Governors. Consequently, she has requested additional information, including a clear explanation of the conditions and process for Kraken's approval. Waters is considered a leading candidate to return as chair of the committee if the Democratic Party wins a majority in the House in the upcoming midterm elections.