Kraken Wins Federal Reserve Master Account Approval

Crypto exchange Kraken has secured approval for a Federal Reserve “master account,” granting its banking arm direct access to the Fed’s core payment systems. The decision, reported by the Wall Street Journal, is expected to be formally announced by the Kansas City Federal Reserve.

Kraken Financial, a regulated depository institution tied to parent company Payward, will maintain balances directly at the central bank through the account, according to WSJ. Such master accounts allow institutions to move funds across the Federal Reserve’s payment rails without intermediary banks.

The approval arrives as crypto firms increasingly push into traditional financial infrastructure, seeking charters and regulated status across US banking frameworks. Companies including Circle, Ripple, Paxos, Cryptocom, and Stripe-owned Bridge have also secured conditional national trust bank approvals.

Kraken’s account carries limitations resembling the Federal Reserve’s proposed “skinny” master account, excluding interest payments on reserves held at the central bank. Executives say the structure still improves reliability and efficiency when moving fiat deposits into and out of digital-asset markets.

Polymarket Archives Controversial Nuclear Detonation Market

Prediction platform Polymarket officially removed a contract this Tuesday regarding the potential detonation of a nuclear weapon in 2026. This specific market had reached over $650,000 in trading volume before being archived due to intense public and regulatory backlash. Critics argued that such wagers allow individuals with non-public military information to profit from catastrophic global events.

Polymarket also deleted a social media post that previously highlighted a 22% probability of a nuclear strike occurring this year. This controversy follows reports that several new wallets earned $1 million by correctly predicting recent US strikes against targets in Iran. CFTC Chair Michael Selig noted that the agency is currently preparing new rules to establish clearer standards.

Trump Pressures Congress to Advance Crypto Market Rules

President Donald Trump publicly accused major banks of attempting to undermine his administration's digital asset agenda. He urged lawmakers on Truth Social to quickly finalize the CLARITY Act to ensure the United States remains a global crypto capital. These comments follow a heated dispute with JPMorgan CEO Jamie Dimon regarding whether stablecoin platforms should offer yields to users.

Dimon recently argued that any crypto firm paying rewards on balances should be regulated under the same framework as traditional banks. This standoff over yield programs has effectively stalled negotiations for the broader market structure bill in the Senate Banking Committee. While the GENIUS Act governing payment stablecoins is already law, the next phase of legislation remains in legislative limbo.

CFTC Chair Teases New Crypto Perpetual Futures Rules

CFTC Chair Michael Selig said that the United States could soon permit perpetual futures contracts tied to cryptocurrencies. Speaking during a Milken Institute panel in Washington, he estimated guidance or approvals could emerge within the next month. Regulators aim to address derivatives products that many offshore exchanges currently dominate.

Selig also indicated the agency will soon release additional guidance covering crypto-related prediction markets. He reiterated the CFTC’s position that it holds primary authority over event contract platforms operating in the sector. The remarks came as lawmakers debate broader market structure legislation defining responsibilities between the CFTC and SEC.

Data of the Day

Australia could generate roughly $17 billion in annual economic gains from digital assets and tokenized markets under supportive regulation. The estimate comes from a report released Monday by the Digital Finance Cooperative Research Centre and industry partners. Researchers analyzed potential benefits across financial markets, payments infrastructure and tokenized asset systems.

The report warns the opportunity may shrink dramatically if policymakers delay clearer regulatory frameworks. Current projections suggest gains could reach only about $710 million by 2030 under existing policy conditions. Analysts recommend regulatory sandboxes, tokenized government bonds and wholesale central bank digital currency experiments to accelerate development.

More Breaking News

• Sui’s native USDsui stablecoin launched on Wednesday, promising to funnel backing asset yield directly back into the ecosystem to incentivize decentralized finance protocols.
• Solana stablecoin transaction volume hit a record $650 billion in February, signaling a major shift toward retail payment infrastructure over speculative trading.
• MEXC expanded its onchain equities offering by listing 17 new tokenized stock trading pairs and seven defense sector assets through a partnership with Ondo.
• Vitalik Buterin urged Ethereum to embrace "sanctuary technologies" like privacy tools and decentralized social systems to protect user autonomy beyond just finance.
• A Coinbase executive warned UK lawmakers that proposed Bank of England stablecoin holding limits could prevent digital assets from reaching institutional scale.
• Beast Industries fired a video editor following a Kalshi probe that revealed the employee used non-public information for insider trading on predictions.
• South Korean regulators settled on a 20% ownership cap for crypto exchanges, potentially forcing major firms like Bithumb and Upbit to restructure.
• Indiana Governor Mike Braun signed a bill requiring state public retirement plans to offer cryptocurrency investment options to employees by July 2027.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.