Coinbase Pushes Back on Federal Reserve's 'Skinny' Payment Accounts Proposal

Coinbase has submitted its feedback to the Federal Reserve on its proposed 'skinny' payment accounts, urging the Fed to add more features to make them useful for non-bank institutions.

The exchange argued that these limited-purpose accounts should allow companies like Coinbase to earn interest on their balances, not just store money in accounts that cost more to maintain than they're worth.

Coinbase also criticized the proposed low overnight balance limits, which would further constrain how these accounts function in real-world payment operations.

The company's Chief Policy Officer, Faryar Shirzad, reinforced this position publicly on February 13, emphasizing the need to modernize US payment structures.