Coinbase Seeks Payment Account Overhaul

Coinbase has submitted comments to the Federal Reserve's proposal for Payment Accounts, urging revisions to make the accounts commercially viable. The exchange commended the Fed's move to expand access to the master account but requested changes to the proposed framework.

The Payment Account would allow eligible financial institutions to clear and settle payments through Federal Reserve infrastructure, but with fewer services than traditional master accounts. Holders would receive no interest, intraday credit, or access to the discount window.

Coinbase recommended that Payment Accounts be allowed to earn interest on at least a portion of their balance, rather than the zero interest currently proposed. The exchange also requested limits on overnight balances and greater certainty about how closing balances will be set.

Banks have opposed the Payment Account proposal, with the American Bankers Association arguing that a master account should be reserved for institutions that are federally supervised and have insured deposits.