In brief
- Kraken became the first crypto bank to receive a Federal Reserve master account on Wednesday.
- Major banking groups criticized the move as risky and potentially inconsistent with the Fed’s own policies.
- The dispute adds to broader tensions between banks and the crypto industry over stalled crypto legislation.
Top banking trade groups slammed the Fed’s decision to hand a coveted master account to crypto firm Kraken Wednesday, arguing the move was not only risky, but violated the central bank’s own policies.
On Wednesday, Kraken announced it successfully secured a master account from the Federal Reserve Bank of Kansas City. Master accounts allow a bank to access the Fed’s payment services, and are considered practically…
