Senator Blunt Rochester Presses Federal Reserve for Answers on Kraken Payment Account Pilot

Senator Lisa Blunt Rochester (D-Del.), a member of the Senate Banking, Housing, and Urban Affairs Committee, today sent a letter to the Federal Reserve Board of Governors requesting information regarding the recent decision to grant a limited-purpose Federal Reserve master account to Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution affiliated with the digital asset exchange Kraken.

The approval allows Kraken Financial to access certain Federal Reserve payment services through a limited-purpose or "skinny" account structure that the Federal Reserve is currently considering. Senator Blunt Rochester's letter raises concerns that the approval appears to have occurred before the Federal Reserve finalized a broader policy framework governing such accounts.

"Access to the Federal Reserve's core payment infrastructure-including Fedwire, Fed ACH, and FedNow-is a significant privilege with important implications for the safety, resilience, and integrity of the U.S. financial system," wrote Senator Blunt Rochester. "These systems process trillions of dollars in transactions each day and underpin payroll, commerce, and financial market activity across the country. Traditionally, access to the Federal Reserve's core payment infrastructure, through provision of a master account, has been reserved for insured depository institutions and a very narrow set of additional firms."

"However, the approval of a limited-purpose account for Kraken Financial appears to have occurred before the Federal Reserve Board finalized a policy framework governing these accounts," Blunt Rochester continued. "This raises questions about the process by which the decision was made, the role of the Board of Governors in overseeing Reserve Bank account approvals, and the standards and risk assessments applied in evaluating this application. The decision also raises questions about how the Board ensures consistent policy implementation across the Federal Reserve Banks when the governing policy framework remains under development."

The letter also notes that Federal Reserve Vice Chair for Supervision Michelle Bowman described the account as a limited-duration pilot or "experiment" and states that the approval may representthe first operational instance of a limited-purpose account under consideration by the Board. The letter requests additional information regarding the pilot's safeguards, evaluation criteria, and future implications for expanded access to Federal Reserve payment infrastructure.

Following Senator Blunt Rochester's letter, the Federal Reserve Board announced that it would pursue a formal public rulemaking process for limited-purpose "payment accounts" and encouraged Reserve Banks to temporarily pause additional Tier 3 account access decisions while the framework is under development. The announcement underscores the importance of clear safeguards, consistent standards, and appropriate oversight as the Federal Reserve considers broader access to its payment infrastructure.

Senator Blunt Rochester requested responses to her questions no later than June 5, 2026. To read the full letter, click here.