More crypto firms likely to get Fed master accounts and banks lack power to block approvals, TD Cowen says

Investment bank TD Cowen, through its managing director Jaret Seiberg, anticipates that more cryptocurrency entities will secure Federal Reserve master accounts following Kraken Financial's recent approval. Seiberg views this as inevitable, especially given expected support under a potential Trump presidency, and expects further announcements soon. Kraken Financial, operating as a Wyoming-chartered Special Purpose Depository Institution (a 'Tier 3' entity), received a one-year, limited-purpose account from the Kansas City Fed, suggesting regulators completed a full review. However, access will likely be restricted, excluding services like overdraft privileges or interest on reserves. Banks, represented by groups like the Bank Policy Institute, strongly oppose these approvals and have voiced concern over the Kansas City Fed's decision preceding finalized Federal Reserve Board policy. Despite anticipated litigation and political pushback from banks, TD Cowen maintains that crypto entities will ultimately gain master account access.

(Source：The Block)