Banks Respond to Kraken’s Federal Reserve Access as Trump Sides with Crypto
Banks strongly oppose the Fed granting Kraken master account access, while Trump publicly supports the crypto industry in the stablecoin legislation debate.Summary
The banking sector, represented by the Independent Community Bankers of America (ICBA) and the Bank Policy Institute (BPI), fiercely criticized the Federal Reserve's decision to grant cryptocurrency exchange Kraken a master account, arguing it risks financial stability and lacked transparency.
This move allows Kraken direct access to the Fed's payment infrastructure, bypassing intermediary banks. This tension is part of a broader conflict over stablecoins, where banks previously lobbied against the GENIUS Act, fearing deposit outflows, and urged Congress to close loopholes allowing stablecoin issuers to pay interest via exchanges.
Adding a new dimension to the fight, former President Donald Trump recently sided with the crypto industry, accusing banks of undermining the GENIUS Act and stalling the CLARITY Act negotiations. Trump urged Congress to pass the market structure bill, emphasizing that Americans should earn more on their money and warning that failure to act could benefit other countries.
(Source：BeInCrypto)