Bipartisan PACE Act Targets Cheaper Payments for Fintechs and Crypto Firms
The bipartisan PACE Act aims to grant fintech and crypto companies direct access to Federal Reserve payment systems to reduce consumer costs.Summary
US Representatives Young Kim and Sam Liccardo have introduced the bipartisan Payments Access and Consumer Efficiency (PACE) Act, designed to modernize US payment infrastructure. Currently, nonbank payment providers must rely on legacy banks to access Federal Reserve clearing and settlement systems, often facing significant fee markups. The proposed legislation would allow qualified nonbank firms to register for a federal supervisory framework under the Office of the Comptroller of the Currency (OCC), granting them direct access to systems like Fedwire and FedNow. To participate, firms must maintain 1:1 reserves and meet rigorous risk management standards. The bill has received strong backing from industry groups like the Blockchain Association, though it may face resistance from traditional banking lobbies concerned about losing their role as intermediaries.
(Source：BeInCrypto)