Bipartisan PACE Act Introduced To Expand Crypto Firms’ Access To Fed Payment Services

A new bipartisan bill introduced on Tuesday would give many fintech and crypto payment providers a clearer path to the US payment infrastructure. 

The new measure, called the Payments Access and Consumer Efficiency (PACE) Act, is designed to create a national payments license that would streamline how qualified companies can access federal payment services, to make digital transfers faster and less expensive for consumers and small businesses.

The PACE Act, introduced by Representatives Young Kim and Sam Liccardo, is said to include a streamlined federal registration process. Payment companies in the crypto sector could apply for federal registration under clear standards.

The legislation also calls for direct access to federal payment networks for approved fintech and crypto companies, alongside what the Representatives describe as robust oversight and enforcement. 

A key detail raised in the broader discussion of the bill is how it relates to the Federal Reserve’s (Fed) approach to account structures for nonbank participants. 

As reported by Crypto in America’s Eleanor Terrett, the PACE Act would permit these institutions to access Federal Reserve payment services in a manner aligned with Fed Governor Christopher Waller’s “skinny master accounts” concept—an approach crypto exchange Kraken gained access to earlier this year. 

The reporting further says the bill would shift final decision-making authority for skinny master account applications to the Federal Reserve Board rather than the individual Reserve Banks.

Several crypto groups have thrown their support behind the legislation. According to the bill’s official materials, endorsements include the Financial Technology Association, the Blockchain Association, the Digital Chamber, and the Crypto Council for Innovation (CCI). 

Their collective message is that the bill would modernize access to core payment rails while keeping regulatory guardrails in place, especially for consumer protection and oversight.

In remarks accompanying the announcement, Rep. Young Kim said Americans should not have to wait days to access money they are sending to themselves or pay extra just to move funds. 

The bill, in her view, “modernizes our system to deliver faster payments, lower costs, and helps families and small businesses keep more of their hard-earned money.”

Rep. Sam Liccardo also emphasized access and competition for nonbank payment firms, arguing that crypto payment companies have been shut out of the same infrastructure available to competitors. 

The Crypto Council for Innovation also praised the bill, pointing to its aim to allow businesses with 40 or more money transmitter licenses to comply with a uniform federal regulatory framework overseen by the Office of the Comptroller of the Currency (OCC). 

The CCI position is that expanding access to Federal Reserve payment services for well-regulated institutions would improve competition, while ensuring strong consumer protection standards are met. 

The Crypto Council for Innovation said it looks forward to working with Congress to move the legislation forward so Americans benefit from “secure and efficient payment options.”

Featured image from OpenArt, chart from TradingView.com