On February 5, Coinbase submitted formal feedback to the Federal Reserve advocating for payment accounts that offer interest on balances, a feature missing from the Fed's current proposal for limited-purpose accounts aimed at non-bank firms. The exchange argues that without interest accrual, these accounts won’t be commercially viable for crypto and fintech companies.
Coinbase specifically challenged the Fed’s plan to cap overnight balances and ban interest earnings, which the company says undercuts the usefulness of these accounts. Their Chief Policy Officer, Faryar Shirzad, emphasized that modernizing US payment infrastructure means enabling non-bank players to operate with tools comparable to traditional banks, including earning interest and accessing intraday credit.
Risk Focus and Global Competition
Rather than traditional credit or liquidity risks, Coinbase encourages the Fed to prioritize operational risks like cybersecurity and system reliability when overseeing these accounts. The company warns that the US risks falling behind as other countries like the UK, EU, Brazil, and India already grant non-bank firms access to central bank payment systems.
The Fed’s May 2026 draft proposal allowed some crypto firms limited access to master and payment accounts but left out interest payments and intraday credit. Coinbase’s push reflects a broader industry call for payment system reforms that could affect how crypto companies handle funds and interact with the financial system.
This information is provided for informational purposes and does not constitute financial advice.
