Bill to grant crypto firms access to Federal Reserve alarms experts
— American families, Preceded, Raskin served, Add 500 employees, State charter, Tide, Digital assets — 1 min read
The provision would force the Federal Reserve to grant so-called master accounts to certain crypto firms seeking them from the central bank. The accounts give holders access to the Fed’s payment system, allowing them to settle transactions for clients without involving a separate bank. Two Wyoming-based crypto firms, Custodia Bank and Kraken Financial, have been stymied over the last two years in bids to gain Fed master accounts. The push by crypto firms to join the banking system's central plumbing comes at a fraught moment for the industry and its regulators. The longer-term result could be a new buildup of systemic risk akin to what has preceded other financial meltdowns, some experts say. Proponents say it will have the opposite effect, shoring up the crypto economy Source