Coinbase has formally told the Federal Reserve that its proposed “skinny” payment accounts need a lot more meat on the bone. In a response submitted on February 5 to a Fed consultation, the exchange argued that these limited-purpose accounts should allow non-bank institutions, including crypto and fintech firms, to earn interest on their balances, not just park money in accounts that cost more to maintain than they’re worth.
What Coinbase actually wants
The Federal Reserve has been exploring limited-purpose payment accounts designed to give non-bank entities some access to its systems. Coinbase’s issue is that the current proposal strips out features that would make these accounts actually useful in practice.
Specifically, Coinbase criticized the potential prohibition on earning interest on account balances. The company called interest accrual essential for commercial viability.
Coinbase also took aim at proposed low overnight balance limits, which would further constrain how these accounts function in real-world payment operations.
