Summary
- The Independent Community Bankers of America (ICBA), which represents small US banks, said it opposes the Fed’s approval of a master account for Kraken.
- The ICBA said providing master accounts to nonbanks and cryptoasset firms could pose risks to the banking system.
- Kraken Financial previously said it had obtained master account approval, which grants access to the Federal Reserve’s core payments system.
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The US banking industry has voiced opposition to the Federal Reserve’s approval of a master account for cryptocurrency exchange Kraken.
According to Eleanor Terrett, host of Crypto in America, on the 4th (local time), the Independent Community Bankers of America (ICBA), which represents small US banks, said that “providing master accounts—traditionally limited to federally insured depository institutions subject to stringent regulation—to nonbanks and cryptoasset firms could pose risks to the banking system.”
The Bank Policy Institute, a banking policy group, also took issue with the Federal Reserve Bank’s decision-making process.
The group said, “The Federal Reserve Bank made its decision before completing the Board of Governors’ formal process for soliciting input,” adding that “this violates the policy requiring public comment on major changes related to the payments system.”
Previously, Kraken Financial, Kraken’s banking arm, said it had secured approval for a “master account,” which grants access to the Federal Reserve’s core payments system.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
