US Reps. Young Kim (R-CA) and Sam Liccardo (D-CA) introduced the Bipartisan Payments Access and Consumer Efficiency (PACE) Act on Tuesday, requesting a federal framework that will give fintechs and crypto companies direct access to the Federal Reserve rail payments.
The bill is targeting a long-term restriction on US payments. Currently, only legacy banks can connect directly to the Fed’s withdrawal process, charging non-banks up to 100% of the Fed’s fee for each transaction, according to the bill.
What the PACE Act Could Change
Under this law, qualified non-banking companies can apply to have a government regulatory system administered by the Office of the Comptroller of the Currency (OCC).
Registered agents can access Fedwire, FedNow, and FedACH.
The bill requires service providers to have a 1:1 database in secure, liquid and risk-adjusted products and services. written records.
It also supports the concept of “skinny master accounts” promoted by Federal Reserve Governor Christopher Waller.
Crypto exchange Kraken became the first digital company to receive such an account in early March.
The measure comes alongside other pro-crypto legislative efforts, including GENIUS Act for stablecoins.
However, the PACE Act focuses narrowly on payment goals rather than on market conditions or a set of indicators.
“We can reduce the cost of banking for many American families by providing access to innovative payment methods that provide affordable, fast, reliable services,” Eleanor Terrett. reportciting Rep. Sam Liccardo.
Corporate Groups are Billing Back
The Blockchain Association, the Crypto Council for Innovation, the Financial Technology Association, and the Digital Chamber all endorsed the PACE Act.
Blockchain Association CEO Summer Mersinger called it “an important step forward,” saying that digital asset payment companies have been “locked in” to financial services available to their competitors.
The bill now goes to committee, where traditional banking institutions may push back on measures that limit their role as mediators. payment.
A note Bipartisan PACE Act Pursues Affordable Fees for Fintechs and Crypto Firms appeared for the first time BeInCrypto.
