Two members of the U.S. House of Representatives—Democrat Sam Liccardo and Republican Young Kim—have introduced a new bill that would grant certain institutions direct access to Federal Reserve payment services. The proposed legislation aims to establish a faster and more cost-effective payment infrastructure for both individuals and businesses. Supported by leading organizations from the cryptocurrency sector, the bill seeks to bridge the gap between fintech companies and traditional banking.
What changes with the PACE Act?
The Payments Access and Consumer Efficiency Act (PACE), spanning 23 pages, primarily creates a new supervisory framework for non-bank payment providers. The system would be overseen by the Office of the Comptroller of the Currency (OCC), with participation open to digital payment companies licensed in at least 40 states.
Under the PACE Act, a unified federal standard would be established for onboarding these companies. Payment service providers would be required to hold reserves at a one-to-one ratio and comply with extensive obligations covering risk management and record keeping. This comprehensive approach would replace the current patchwork of state-level regulations.
If enacted, the bill would allow these companies direct access to the Fedwire, FedNow, and FedACH systems. This move is intended to facilitate near-instant, low-cost payment processing.
Initial reaction from the sector
The proposal has garnered swift support from major players in the cryptocurrency and digital assets industry. The Crypto Council of Innovation, a leading advocacy group, emphasized that the regulation would boost competition in the marketplace. CCI CEO Ji Hun Kim offered the following assessment:
The Council wants to work alongside Congress to advance responsible payment innovation, ensuring that Americans can benefit from safer and more efficient payment methods.
Summer Mersinger, CEO of the Blockchain Association, described the legislation as “a significantly forward-looking step.” According to Mersinger, once the PACE Act takes effect, digital asset firms and payment platforms—previously unable to plug directly into the central financial network—will finally gain access to this critical infrastructure.
For years, digital asset payment companies have been denied access to the financial infrastructure available to their competitors. Thanks to the PACE Act, institutions meeting certain criteria will be able to connect to Federal Reserve payment systems, offering faster and more affordable solutions for both individuals and businesses.
The proposed framework is expected to reduce reliance on traditional banking methods for domestic money transfers across the U.S. As a result, both consumers and entrepreneurs will be better positioned to tap into next-generation payment systems.
Potential impacts on the U.S. financial ecosystem
Should the new law come into force, the expansion of non-bank payment services onto a broader landscape could usher in a wave of innovation. This shift may challenge the dominance of conventional banks as the sole decision-makers in the market. Additionally, expanded financial inclusion could provide extra benefits—especially for groups facing cash shortages.
Experts predict that, if the bill passes, crypto-focused payment companies will see accelerated growth and increased market entry.
