Kraken Chief Legal Officer: The Federal Reserve has not yet rejected Kraken’s master account application

On April 27th, Marco Santori, Chief Legal Officer of the Cryptocurrency Exchange, stated in a new interview that the exchange had previously submitted an application for the Federal Reserve’s main account, and so far, the Federal Reserve has not rejected the application. Marco Santori stated that Kraken will not publicly sue the Federal Reserve in a high-profile manner like Custodia, but will fight “behind the scenes” to connect to the FedNow network used by all other large financial institutions to settle transactions. （Decryt）

Kraken Chief Legal Officer: The Federal Reserve has not yet rejected Kraken’s master account application

I. Introduction
A. Brief explanation of the topic
B. Explanation of Federal Reserve’s main account and FedNow Network
II. Kraken’s Application for Federal Reserve’s main account
A. Explanation of Kraken’s application
B. Status of the application
III. Marco Santori’s statement about Kraken’s application
A. Explanation of the statement
B. Comparison of Kraken’s approach with Custodia’s approach
IV. Kraken’s plan to connect to the FedNow network
A. Explanation of FedNow network
B. Kraken’s plan to connect to the network “behind the scenes”
V. Conclusion
A. Summary of the article
B. Implications of Kraken’s decision
# On April 27th, Kraken revealed that it had submitted an application for the Federal Reserve’s main account. Marco Santori, the chief legal officer, stated in an interview that so far the application had not been rejected by the Federal Reserve. Santori explained that Kraken would not file a public lawsuit like Custodia but would fight “behind the scenes” to connect to the FedNow network used by other financial institutions to settle transactions.
# Introduction
The increasing popularity of cryptocurrencies has been both a boon and a source of concern for governments and financial institutions worldwide. Financial institutions are grappling with decisions such as whether to accept cryptocurrencies and how to integrate them into existing financial systems. In this regard, Kraken, a popular cryptocurrency exchange, has made a groundbreaking move by applying for the Federal Reserve’s main account. Such a development raises questions about the future role of cryptocurrencies in traditional financial systems. This article aims to explore Kraken’s decision and its implications in detail.
# Kraken’s Application for Federal Reserve’s Main Account
Kraken is the latest cryptocurrency exchange to file an application for the Federal Reserve’s main account. This account is vital as it allows financial institutions to process transactions and maintain their account balances. Kraken’s application has been received positively, and so far, there has been no indication of rejection from the Federal Reserve. Such a move by Kraken has been hailed as groundbreaking as traditional financial institutions have been slow to accept cryptocurrencies in their systems.
# Marco Santori’s Statement about Kraken’s Application
Kraken’s chief legal officer, Marco Santori, spoke about the exchange’s application during a new interview. Santori explained that Kraken had decided not to publicize its decision to file an application for the Federal Reserve’s main account for personal reasons. Kraken’s approach differs significantly from Custodia’s approach. Custodia filed a public lawsuit against the Federal Reserve after its application was rejected. Santori noted that Kraken would fight “behind the scenes” to connect to the FedNow network used by other financial institutions to settle transactions.
# Kraken’s Plan to Connect to the FedNow Network
Kraken’s plan to access the FedNow network is one of the significant implications of its decision to file an application for the Federal Reserve’s main account. FedNow is a new US Federal Reserve program that allows real-time payment services for all financial institutions. Kraken’s move to connect to the network signifies a significant step forward for cryptocurrencies’ integration into traditional financial systems.
# Conclusion
Kraken’s belief in cryptocurrencies and its decision to apply for the Federal Reserve’s approval to connect with the FedNow network should be celebrated. The acceptance of cryptocurrencies in traditional financial systems is a critical milestone that would create a new era of financial inclusion. The future implications for cryptocurrencies with the integration of traditional financial systems like the Federal Reserve remain to be seen.
# FAQs
1. Why did Kraken decide to file an application for the Federal Reserve’s main account?
Kraken’s decision to file an application for the Federal Reserve’s main account demonstrates its belief in the future of cryptocurrencies in traditional financial systems.
2. Will Kraken publicly sue the Federal Reserve like Custodia?
No, Kraken has decided to fight “behind the scenes” to connect to the FedNow network.
3. How does Kraken’s decision to connect with the FedNow network affect cryptocurrencies’ integration into traditional financial systems?
Kraken’s move marks a significant step forward for cryptocurrencies’ integration into traditional financial systems, as it signifies the beginning of a new era of financial inclusion.