- Coinbase asked the Federal Reserve to allow interest on payment account balances and tailor limits to operational payment needs.
- The company urged regulators to focus oversight on cybersecurity, resilience, and compliance rather than traditional banking risks.
- Coinbase also backed the CFTC’s proposed framework to clarify how prediction market contracts should be regulated.
Coinbase has asked the Federal Reserve to revise its proposed payment account framework, arguing the current structure would limit practical use for non-bank financial firms. According to Chief Policy Officer Faryar Shirzad, the company submitted comment letters this week urging the Fed to expand access, allow interest on balances, and adopt oversight based on actual operational risks.
Coinbase Calls For Three Key Changes
According to Shirzad, Coinbase supports the Federal Reserve’s effort to modernize the U.S. payment system. However, the company said three changes are necessary before the proposal can work effectively.
First, Coinbase urged the Fed to allow payment accounts to earn interest on at least part of their balances. The company said interest would improve the commercial viability of the accounts for payment providers.
Second, Coinbase asked regulators to tailor overnight balance limits to each institution’s demonstrated payment needs. According to the company, fixed balance caps could restrict normal payment operations.
Third, Coinbase said supervisory requirements should focus on the actual risks presented by payment accounts. The company argued that oversight should primarily address cybersecurity, operational resilience, and compliance instead of traditional banking risks.
Company Points To Global Payment Systems
Coinbase also compared the proposal with payment frameworks adopted in other jurisdictions. According to the company, the United Kingdom, the European Union, Brazil, and India already provide some level of central bank payment system access to non-bank institutions.
The Federal Reserve proposed limited-purpose payment and master accounts in May 2026 for crypto firms and other non-bank companies. However, the proposal excluded interest on balances and intraday credit, two features Coinbase identified as important for day-to-day payment operations.
Separate Filing Supports Regulatory Clarity
Separately, Coinbase also submitted comments to the Commodity Futures Trading Commission regarding proposed prediction market rules. In a letter dated July 27, Chief Policy Officer Faryar Shirzad said the company supports the agency’s effort to clarify how event contracts should be evaluated under the Commodity Exchange Act.
According to the filing, Coinbase welcomed the proposal’s separate review of whether an event contract involves an enumerated activity and whether it serves the public interest. The company said it looks forward to continuing discussions with the CFTC as the rulemaking process advances.
