Trump Orders Fed Review of Crypto Firms’ Direct Access to U.S. Payment Rails

The Federal Reserve’s payment system, known as the Fedwire, settles high‑value dollar transactions between banks. Access is normally limited to licensed depository institutions through master accounts held at regional Reserve Banks. Crypto firms have sought similar entry to avoid relying on intermediary banks for dollar settlement, but current rules treat them differently. In March, the Kansas City Fed approved a limited‑purpose master account for Kraken Financial, giving the exchange’s Wyoming‑chartered banking arm direct Fedwire access without interest on reserves or discount‑window borrowing.

President Trump’s executive order, titled “Integrating financial technology innovation into regulatory frameworks,” instructs the Fed to review its policies on Reserve Bank payment accounts and to clarify whether regional banks can independently grant master accounts to non‑bank firms. Kraken Co‑CEO Arjun Sethi described the Fed approval as “the convergence of crypto infrastructure and sovereign financial rails.” The Independent Community Bankers of America expressed deep concerns, warning that allowing a crypto‑focused institution to use Fed infrastructure under a different regulatory regime than traditional banks could create uneven risk exposure.

If the Fed expands master‑account eligibility, crypto firms could settle dollar payments directly, reducing reliance on correspondent banks and potentially lowering transaction costs. Traditional banks may face increased competition for payment volumes, while regulators would need to address safety‑net concerns for non‑insured entities. Investors should watch for the Fed’s forthcoming guidance on limited‑purpose accounts, any legislative action on the PACE Act, and subsequent price reactions in crypto‑related equities such as COIN, MARA, and RIOT.