[Reuters: Kraken's Federal Reserve Master Account Sparks Concerns Over Systemic Risks] Foresight News reports, according to Reuters, Democratic Representative Maxine Waters of the U.S. House Financial Services Committee and the banking industry have expressed concerns over cryptocurrency exchange Kraken obtaining a Federal Reserve master account. They believe this move could pose systemic risks, money laundering, and operational risks to the U.S. financial system. Waters pointed out that the approval process lacked transparency and demanded the Kansas City Fed disclose more details by Friday. Regulatory experts have warned that such crypto institutions lacking federal insurance could become operational vulnerabilities. In the event of a hacking attack or liquidity mishap, it could lead to settlement failures and force the Federal Reserve to intervene. Kraken's Wyoming-based banking subsidiary previously obtained a one-year "limited-purpose" Federal Reserve master account, becoming the first crypto company to receive such authorization. This account allows direct access to the wholesale payment system Fedwire and holding limited overnight balances, reducing reliance on banking intermediaries. However, Kraken cannot earn interest on reserves or access the Federal Reserve's emergency loans, FedNow, or ACH payment systems. Currently, companies like Ripple, Anchorage Digital, and Wise are also seeking to obtain similar accounts.