Coinbase Urges Fed to Modernize US Payments to Match European Standards

Coinbase backed a Federal Reserve proposal that would let non-bank firms, including crypto and fintech companies, hold special-purpose payment accounts. The exchange said such accounts would reduce reliance on intermediary banks for dollar settlement, cutting costs, delays and counterparty risk.

In a letter to the Fed, Coinbase urged the creation of special-purpose Reserve Bank payment accounts as a step toward modernizing the U.S. payment system. The company noted that similar access in the United Kingdom, the European Union, Brazil and India has accelerated competition and reduced settlement risks.

But Coinbase warned the proposal’s “unnecessarily constraining” limits — including no interest on end-of-day balances and low overnight balance caps — could leave the accounts “dead on arrival.” The firm argued balance-sheet limits are “not fit for purpose,” saying payment risks are operational rather than credit, market or liquidity risks.

United States

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