The post Coinbase Puts the Pressure on Fed, Here’s Why appeared on BitcoinEthereumNews.com.

Coinbase, the largest US-based crypto exchange, is backing a Federal Reserve proposal to grant non-bank financial institutions access to specialized payment accounts. The San Francisco-based exchange submitted a letter to the U.S. central bank advocating for special-purpose Reserve Bank payment accounts. It argued that these accounts are vital for modernizing the nation’s domestic financial infrastructure. Sponsored Sponsored Coinbase Challenges Fed Over ‘Restrictive’ Terms for Payment Rails Coinbase argues the proposal would grant fintech and crypto-native firms direct access to the Federal Reserve’s payment rails. This change would allow these entities to utilize the global economy’s core “plumbing” without the need for a full commercial banking charter. Currently, most crypto firms must rely on intermediary banks to settle dollar transactions. This process adds cost, latency, and counterparty risk to these services. “By reducing reliance upon FDIC-insured partner banks as intermediaries for core payment functions, the Payment Account would allow account-holding institutions to offer safe and efficient services to U.S. consumers and businesses and, at the same time, reduce costs and ensure the ability of emerging payment providers to scale with growing demand,” the exchange remarked. Faryar Shirzad, Coinbase’s chief policy officer, also noted that similar access is already available in the United Kingdom, the European Union, Brazil, and India. Coinbase submitted a letter to the @federalreserve strongly supporting the creation of a payments-specific Fed account. The Payment Account represents an important step toward modernizing the U.S. payment system and ensuring that the United States remains globally competitive in… pic.twitter.com/ZRLYgWDJmK — Faryar Shirzad 🛡️ (@faryarshirzad) February 13, 2026 Sponsored Sponsored Shirzad argued that these jurisdictions have seen accelerated competition and reduced settlement risks, helping their financial sectors remain globally competitive. However, the crypto giant warns that the current framework risks being “dead on arrival” due to overly restrictive limits. Coinbase argues that…

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Filed under: News - @ February 14, 2026 3:27 pm