On the same day that Kraken's Fedmaster Account was approved, the banking lobbying group immediately launched a counterattack.

By: blockbeats|2026/03/05 18:00:01

Original Title: Banking lobby decries Kraken bagging 「skinny」 Federal Reserve account

Original Author: Eric Johansson, DLNews

Original Translation: DeepTech TechFlow

DeepTech Summary: Kraken securing a Federal Reserve master account triggered immediate pushback from the banking lobby, citing violations, lack of transparency, and bypassing the public comment process.

This is not just a regulatory dispute but a microcosm of the collision between the crypto industry and the $23 trillion traditional banking sector—also echoing the stablecoin interest rate battle.

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Kraken has been granted a Federal Reserve master account, seen as a milestone for the long-oppressed crypto industry. However, banking lobbyists are pushing back against this decision. Following the approval of Kraken's master account application by the Kansas City Fed, the banking lobby expressed "deep concerns."

This victory grants the crypto exchange access to the same payment rails as thousands of banks and credit unions.

"We are deeply concerned about the Kansas City Fed's approval of a 'limited purpose' master account application—a seemingly 'skinny' account— at a time when the Fed has not yet completed a policy framework for such accounts," stated Paige Pedano Parrish, Co-Director of Regulatory Affairs at the Bank Policy Institute.

The advocacy group also criticized the Kansas City Fed's decision for disregarding public opinion, lacking transparency, and stating that this action "violates the Fed's own policy of seeking public comment when proposing significant changes to payment systems."

For Wyoming Republican Senator and longtime crypto supporter Cynthia Lummis, this decision marks "a watershed moment."

Indeed, this comes at a crucial juncture of the crypto industry clashing head-on with the U.S. banking sector—where the former is gaining increasing legal and regulatory recognition, thus encroaching on the territory traditionally held by the $23 trillion U.S. lending industry.

Kraken did not immediately respond to requests for comment.

A "Milestone"

On Wednesday, Kraken celebrated receiving its Fed master account, a move that will allow the crypto exchange to process transactions for large clients faster and more smoothly. Kraken Co-CEO Arjun Sethi had previously told DL News in September that the company's goal was to have institutional investors account for one-third of revenue.

While the company won't get the full suite of services from banks at the Fed—such as interest on reserves held at the Federal Reserve—this is still a major win for an industry that has long been seen as the financial industry's "unwanted stepchild."

"This milestone marks the convergence of crypto infrastructure with the national financial rails," Sethi said in a statement. "With the Fed master account, we can operate as a direct access financial institution rather than just a peripheral participant in the U.S. banking system."

Trump's pro-crypto policy provided a legitimacy endorsement for this industry. In his first year back in the Oval Office, the 79-year-old president issued a series of crypto-friendly executive orders, appointed industry allies to key government positions, supported looser regulation of the industry, and signed the landmark stablecoin bill, the GENIUS Act.

However, the GENIUS Act left a loophole that could allow crypto exchanges to pay interest on stablecoin holdings to customers, a move strongly opposed by the banking industry, fearing it would drive customers away from traditional banks.

This week, Trump sided with the crypto industry in the months-long dispute over stablecoin yields. This controversy has threatened the negotiation process of the CLARITY Act—the U.S. cryptocurrency regulatory framework draft.

The banking industry has been lobbying lawmakers to include provisions in the CLARITY Act to close this so-called stablecoin interest rate loophole. Crypto companies, in turn, have pushed back, accusing the banking industry of trying to renegotiate terms in a bill six months after its enactment.

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Mixin has launched USTD-margined perpetual contracts, bringing derivative trading into the chat scene.

The privacy-focused crypto wallet Mixin announced today the launch of its U-based perpetual contract (a derivative priced in USDT). Unlike traditional exchanges, Mixin has taken a new approach by "liberating" derivative trading from isolated matching engines and embedding it into the instant messaging environment.

Users can directly open positions within the app with leverage of up to 200x, while sharing positions, discussing strategies, and copy trading within private communities. Trading, social interaction, and asset management are integrated into the same interface.

Simplified Trading Experience: No KYC Required, Opening a Position in Five Steps

Based on its non-custodial architecture, Mixin has eliminated friction from the traditional onboarding process, allowing users to participate in perpetual contract trading without identity verification.

The trading process has been streamlined into five steps:

· Choose the trading asset

· Select long or short

· Input position size and leverage

· Confirm order details

· Confirm and open the position

The interface provides real-time visualization of price, position, and profit and loss (PnL), allowing users to complete trades without switching between multiple modules.

Social-Native Trading: Strategy and Execution Completed in the Same Context

Mixin has directly integrated social features into the derivative trading environment. Users can create private trading communities and interact around real-time positions:

· End-to-end encrypted private groups supporting up to 1024 members

· End-to-end encrypted voice communication

· One-click position sharing

· One-click trade copying

On the execution side, Mixin aggregates liquidity from multiple sources and accesses decentralized protocol and external market liquidity through a unified trading interface.

By combining social interaction with trade execution, Mixin enables users to collaborate, share, and execute trading strategies instantly within the same environment.

Referral Mechanism: Non-institutional users can receive up to 60% fee split

Mixin has also introduced a referral incentive system based on trading behavior:

· Users can join with an invite code

· Up to 60% of trading fees as referral rewards

· Incentive mechanism designed for long-term, sustainable earnings

This model aims to drive user-driven network expansion and organic growth.

Self-Custody Architecture and Built-in Privacy Mechanism

Mixin's derivative transactions are built on top of its existing self-custody wallet infrastructure, with core features including:

· Separation of transaction account and asset storage

· User full control over assets

· Platform does not custody user funds

· Built-in privacy mechanisms to reduce data exposure

The system aims to strike a balance between transaction efficiency, asset security, and privacy protection.

A New Path for On-Chain Derivatives

Against the background of perpetual contracts becoming a mainstream trading tool, Mixin is exploring a different development direction by lowering barriers, enhancing social and privacy attributes.

The platform does not only view transactions as execution actions but positions them as a networked activity: transactions have social attributes, strategies can be shared, and relationships between individuals also become part of the financial system.

Regulatory Background

Mixin's design is based on a user-initiated, user-controlled model. The platform neither custodies assets nor executes transactions on behalf of users.

This model aligns with a statement issued by the U.S. Securities and Exchange Commission (SEC) on April 13, 2026, titled "Staff Statement on Whether Partial User Interface Used in Preparing Cryptocurrency Securities Transactions May Require Broker-Dealer Registration."

The statement indicates that, under the premise where transactions are entirely initiated and controlled by users, non-custodial service providers that offer neutral interfaces may not need to register as broker-dealers or exchanges.

About Mixin

Mixin is a decentralized, self-custodial privacy wallet designed to provide secure and efficient digital asset management services.

Its core capabilities include:

· Aggregation: integrating multi-chain assets and routing between different transaction paths to simplify user operations

· High liquidity access: connecting to various liquidity sources, including decentralized protocols and external markets

· Decentralization: achieving full user control over assets without relying on custodial intermediaries

· Privacy protection: safeguarding assets and data through MPC, CryptoNote, and end-to-end encrypted communication

Mixin has been in operation for over 8 years, supporting over 40 blockchains and more than 10,000 assets, with a global user base exceeding 10 million and an on-chain self-custodied asset scale of over $1 billion.

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