Coinbase has asked the Federal Reserve to revise its proposed payment account framework, arguing that the current structure would limit practical use for non-bank financial firms. According to Chief Policy Officer Faryar Shirzad, the company submitted comment letters this week urging the Fed to expand access, allow interest on balances, and adopt oversight based on actual operational risks.

In comments supporting the Federal Reserve’s effort to modernize the U.S. payment system, Coinbase said three changes are needed for the proposal to work effectively.

First, the company urged the Fed to allow payment accounts to earn interest on at least part of their balances. Coinbase said this would improve the commercial viability of the accounts for payment providers.

Second, Coinbase asked regulators to tailor overnight balance limits to each institution’s demonstrated payment needs. The company argued that fixed balance caps could interfere with normal payment operations, particularly for firms that need to move funds through the system without holding them long term.

Third, Coinbase said supervisory requirements should be based on the actual risks posed by payment accounts. The company said oversight should focus primarily on cybersecurity, operational resilience, and compliance rather than traditional banking risks.

Coinbase also pointed to payment systems in other jurisdictions, saying the United Kingdom, the European Union, Brazil, and India already provide some level of central bank payment system access to non-bank institutions. That comparison underscores how the Fed’s proposal fits into a broader policy discussion over how much access payment-focused firms should have to core banking infrastructure.

The Federal Reserve proposed limited-purpose payment and master accounts in May 2026 for crypto firms and other non-bank companies. However, the proposal excluded interest on balances and intraday credit, two features Coinbase described as important for day-to-day payment operations.

Separately, Coinbase also submitted comments to the Commodity Futures Trading Commission on proposed prediction market rules. In a letter dated July 27, Chief Policy Officer Faryar Shirzad said the company supports the agency’s effort to clarify how event contracts should be evaluated under the Commodity Exchange Act.

According to the filing, Coinbase welcomed the proposal’s separate review of whether an event contract involves an enumerated activity and whether it serves the public interest. The company said it looks forward to continuing discussions with the CFTC as the rulemaking process advances.