According to Odaily Odaily, US banking organizations strongly oppose the Federal Reserve's approval of master account status for crypto firm Kraken Financial, arguing that this move could allow crypto firms to directly access the Federal Reserve's payment system without the same regulatory safeguards as traditional banks.
A master account is a crucial channel for financial institutions to access the Federal Reserve's clearing and payment network. This approval means that Kraken Financial can directly use the U.S. central bank's payment infrastructure.
The Bank Policy Institute expressed "deep concern" over the decision, noting that it appears to have been made before the Federal Reserve finalized its policy framework. Currently, the Fed is still studying regulatory rules for so-called "skinny master accounts," which are typically offered to financial institutions that do not engage in traditional deposit and loan business.
The agency also criticized the lack of transparency in the approval process, saying that the outside world has no way of knowing the approval process and related risk mitigation measures.
At the same time, some crypto industry supporters believe that this decision may open the door for more financial institutions that focus on payment services but do not engage in traditional banking deposit and loan models, enabling them to directly access the core payment network of the US financial system.
