Coinbase Warns 'Skinny' Payment Accounts Will Stifle Innovation

Coinbase has weighed in on the Federal Reserve's proposed 'skinny' payment accounts, arguing that they need more features to be useful.

The exchange submitted a response to the Fed's consultation on February 5, criticizing the potential prohibition on earning interest on account balances and low overnight balance limits.

Coinbase Chief Policy Officer Faryar Shirzad reinforced these positions publicly around February 13, pushing for modernizing US payment structures.

The company argued that the Fed's oversight framework should focus on operational risks rather than traditional credit or liquidity risk metrics.