Coinbase said it has formally asked the Internal Revenue Service to expand the investment options available in Trump Accounts, a children’s asset-building program created as a type of traditional IRA. The company wants the accounts to be able to hold digital assets and funds tied to the sector, rather than being limited to low-cost US stock index products under draft rules released last month.
The request was outlined on September 25 by Coinbase Chief Policy Officer Faryar Shirzad, who said the exchange submitted a comment letter on how the program should be implemented and broadened. Coinbase argues that the investment menu should more closely resemble what is permitted for traditional individual retirement accounts.
Coinbase’s proposal to the IRS
In its comments to the IRS, Coinbase said Trump Accounts should be permitted to invest in actively traded digital assets as well as funds that invest in digital assets. Shirzad said the current approach is too narrow and urged regulators not to confine the accounts to a preset list of approved products.
Instead, he said, the eligible universe should be expanded to the level allowed for traditional IRAs, with a wider range of investments that meet defined standards. According to Shirzad, that structure would encourage competition among financial firms while also giving account holders broader diversification and more choice.
How the current draft rules work
The company’s request comes after the IRS issued draft rules last month that sharply limit what can be held during the accounts’ growth period. Under that proposal, assets must remain invested until the end of the year in which the beneficiary turns 17 in mutual funds or exchange-traded funds that track stock indexes focused on US companies.
The draft framework also bars leverage and caps annual fees at 0.1% of assets. As written, the proposal does not allow direct purchases of cryptocurrencies such as Bitcoin, and it also excludes investments in crypto exchange-traded funds.
What Trump Accounts are designed to do
Trump Accounts were introduced for Americans under 18 as a form of traditional IRA aimed at early asset building. For US citizens born between 2025 and 2028, the government is set to provide a $1,000 seed contribution for each account.
Additional contributions can be made by parents, employers and charities. Coinbase President and Chief Operating Officer Emilie Choi said the company had supported Trump Accounts from the beginning and described the program as a way to help young Americans start building assets and financial independence at an early stage of life.
Coinbase’s own involvement and what comes next
Coinbase has also tied its own employee benefits to the program. In January, the company said it would match the federal government’s $1,000 contribution with another $1,000 for eligible children of Coinbase employees.
For now, the issue remains at the proposal stage. Coinbase’s position is part of the IRS comment process following last month’s draft rules, and the confirmed next step is the agency’s consideration of those submissions as it decides whether the final framework for Trump Accounts will remain limited to low-cost US stock index funds or be widened to include crypto-related investments.
Source: en.bloomingbit.io