U.S. Representatives Sam Liccardo and Young Kim introduced the bipartisan PACE Act this week, aiming to shorten payment chains and cut transaction costs by opening a federal route into the Federal Reserve’s payment infrastructure for qualified fintech and crypto firms. The bill is built around a simple problem: too many payments still move through several institutions before settlement, adding delay and cost for both consumers and businesses.
An optional federal license with high entry requirements
The proposal creates an optional national license for eligible payment providers rather than replacing state regulation. To qualify, a firm must already hold at least 40 state money transmitter licenses. Oversight of the framework would sit with the Office of the Comptroller of the Currency, and the bill lays out defined review timelines instead of leaving applicants in an open-ended process.
Approval would come with strict obligations. Licensed firms would need to maintain full reserves, keep customer funds segregated, and comply with rigorous standards. The bill also includes insolvency protections that prioritize customer funds if a provider fails. In other words, the measure ties access to federal payment rails to balance-sheet discipline and supervisory control.
Direct access to FedNow, Fedwire, and FedACH
Under the proposal, approved providers could directly access Federal Reserve payment systems, including Fedwire, FedNow, and FedACH. That would reduce dependence on intermediary banks, which often sit between payment companies and the central bank infrastructure used for settlement and transfers. Fewer middle layers could mean faster movement of funds and lower fees.
Liccardo said the bill is meant to address those inefficiencies. The measure also tracks with Federal Reserve Governor Christopher Waller’s idea of “skinny master accounts,” while placing final authority over account approvals with the Federal Reserve Board rather than regional Reserve Banks.
Industry backing centers on access and competition
Support for the bill has come from several industry groups, including the Financial Technology Association, Blockchain Association, The Digital Chamber, and the Crypto Council for Innovation. Their statements focus on a narrow set of issues: infrastructure access for digital asset firms, more competition in payments, and stronger consumer safeguards under a clearer national framework.
Blockchain Association CEO Summer Mersinger said the proposal addresses limited infrastructure access for digital asset companies. Crypto Council for Innovation CEO Ji Hun Kim pointed to stronger competition and consumer protections under the bill. Debate around the PACE Act is still developing, but the current proposal is already clear on its main point: firms that meet strict licensing, reserve, and compliance requirements could gain a direct line into core U.S. payment systems.