Cryptocurrency exchange Coinbase has formally responded to a Federal Reserve proposal that could grant non-bank institutions, including crypto firms, direct access to core U.S. payment settlement systems. The proposed "Reserve Bank Payment Account" framework, first suggested by Fed Governor Christopher Waller in late 2025, would allow eligible entities to hold accounts at a Reserve Bank, enabling them to process payments directly through platforms like FedNow and Fedwire without needing a full banking license.
In its February 6, 2026, filing, Coinbase expressed strong support for the initiative, arguing it is essential for modernizing America's payment infrastructure. The exchange stated that direct access would reduce reliance on intermediary partner banks, thereby cutting costs, reducing settlement risks, and improving the efficiency of fiat on- and off-ramps for crypto platforms. Faryar Shirzad, Coinbase's senior policy officer, cited similar efforts underway in the UK, Brazil, India, and the EU as models for boosting financial competitiveness.
However, the proposal has sparked significant opposition from traditional banking groups. The Financial Services Forum, the Bank Policy Institute, and the Clearing House Association jointly warned that granting payment access to less-regulated businesses, particularly crypto companies issuing dollar-backed tokens, could expose the financial system to new vulnerabilities. In a retaliatory move in February 2026, major banks imposed a 12-month waiting period before accepting any new applicants.
The Fed's proposed framework includes several risk-mitigating limits: account holders cannot earn interest, have no access to emergency lending facilities, and must keep overnight balances below either $500 million or 10% of total assets, whichever is smaller. Coinbase criticized these restrictions as potentially too limiting, warning that the low overnight balance cap and interest prohibition could render the framework "dead on arrival" for large-scale operations. The exchange also requested regulators to allow "omnibus" customer accounts for more efficient settlement.
The public comment period closed on February 6, 2026. Fed Governor Waller has described the framework as a compromise and aims to complete it by the end of 2026, despite the opposition. The final decision will shape the future integration of digital asset platforms with traditional U.S. financial infrastructure.
