Coinbase urges Fed to allow interest on payment accounts

2 min read

Coinbase submitted a response to a Federal Reserve consultation on Feb 5 arguing that the Fed's proposed limited-purpose or "skinny" payment accounts must allow non-bank firms, including crypto and fintech companies, to earn interest and have higher overnight balance limits to be commercially viable. Chief policy officer Faryar Shirzad reinforced those positions publicly around Feb 13. Coinbase also recommended the Fed focus oversight on operational risks like cybersecurity and outages rather than traditional credit and liquidity metrics. The Fed proposed limited master and payment accounts in May 2026 but excluded interest and intraday credit.

Coinbase says Fed accounts must pay interest to be commercially viable