Coinbase is calling for revisions to the Federal Reserve’s proposed Payment Account framework for eligible financial institutions.

Coinbase Chief Policy Officer Faryar Shirzad said the crypto exchange submitted comments supporting the framework while recommending changes intended to make the accounts commercially viable.

The Fed first sought public input on a Payment Account prototype in December 2025. After reviewing the initial feedback, it issued a formal proposal in May 2026.

The accounts would allow legally eligible institutions to clear and settle payments through Federal Reserve infrastructure. They would offer fewer services than traditional master accounts. Under the proposal, holders would receive no interest, no intraday credit and no access to the discount window.

Because the framework sits at the intersection of banking access, payments infrastructure and regulatory oversight, the details matter for institutions that would use it and for the groups that argue it should remain tightly limited. The proposal has also drawn unusually broad attention, with more than 16,000 public comments submitted.

Coinbase Proposes Changes to the Framework

Coinbase praised the Fed’s effort to expand access to a Fed master account, but said the proposal needs revisions. The exchange said those changes are necessary to make the Payment Account workable.

Among its recommendations, Coinbase said Payment Accounts should be allowed to earn interest on at least part of their balance, rather than the zero-interest structure currently proposed.

The company is also seeking limits on overnight balances to better reflect an institution’s needs. It said there should be clearer rules on how closing balances will be determined.

Coinbase further argued that oversight should match actual risk. In particular, it said the Fed should not add extra illicit finance requirements for firms already subject to federal supervision.

Shirzad said that getting the details right would help the accounts fulfill their intended role. “Get these details right, and payment accounts can lower costs, strengthen competition, and keep the U.S. at the frontier of global payments,” he wrote.

US Banks Continue to Oppose the Proposal

Banks continue to oppose the Payment Account proposal. With more than 16,000 public comments submitted, most major banking advocacy groups have called for stricter requirements.

The American Bankers Association (ABA), in a February comment, argued that a master account should be limited to institutions that are federally supervised and hold insured deposits.

In addition to supporting restrictions already proposed for Payment Accounts, the ABA called for additional limits. These include initial transaction caps, surety bond requirements, and prohibitions on nesting and correspondent-like services, among others.

Other banking advocacy groups have taken a similar position. The Bank Policy Institute and The Clearing House published a 50-page paper saying the Payment Account proposal is risky and could undermine payment systems.

“It would allow uninsured institutions subject to less rigorous supervision and regulation to access directly the payments system, which could undermine the integrity of the payments system and pose risks to financial stability,” they wrote.

Crypto advocate and Columbia Business School adjunct professor Omid Malekan criticized the paper. He said banks also fall short on most of the risks and criticisms outlined in it.

Malekan added that most central banks around the world give eligible non-banking institutions access to their infrastructure, while the U.S. is an outlier. He pointed to Brazil and India, saying the U.S. restriction is one reason payments in the country are suboptimal.

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