-
PACE Act introduces optional federal licensing for fintechs, requiring compliance, reserves, and oversight by the OCC.
-
Direct access to Fed systems like FedNow and Fedwire aims to cut delays, lower costs, and reduce reliance on banks.
-
Industry groups support the bill, citing improved competition, infrastructure access, and stronger consumer protections.
U.S. Representatives Sam Liccardo and Young Kim introduced the bipartisan PACE Act this week to modernize payment access and reduce transaction costs. The proposal creates a federal framework for fintech and crypto firms to access Federal Reserve systems. Lawmakers aim to speed up payments and cut fees tied to current multi-layer banking processes.
🚨NEW: This morning, @RepYoungKim and @RepLiccardo unveiled the bipartisan PACE Act to create a national payments license for fintechs and crypto companies.
The bipartisan bill would let regulated state depository institutions and credit unions that conduct money transmission… pic.twitter.com/gDx2JqpZnQ
— Eleanor Terrett (@EleanorTerrett) April 21, 2026
Bill Creates Optional Federal Licensing Framework
The PACE Act establishes an optional national license for qualified payment providers. These firms must hold at least 40 state money transmitter licenses to qualify. The Office of the Comptroller of the Currency would oversee this framework.
However, the system does not replace state regulation. Instead, it offers a streamlined federal option with defined review timelines. Approved firms must maintain full reserves, segregate customer funds, and meet strict compliance standards.
Direct Fed Access Aims to Cut Delays and Fees
Under the proposal, approved providers gain direct access to Federal Reserve payment systems. These include Fedwire, FedNow, and FedACH services. This access reduces reliance on intermediary banks that often slow transactions.
Currently, many payments pass through several institutions before completion. As a result, delays and added costs affect both consumers and businesses. Representative Sam Liccardo said the bill targets these inefficiencies and aims to lower fees.
Additionally, the bill aligns with Federal Reserve Governor Christopher Waller’s “skinny master accounts” concept. It also gives the Federal Reserve Board final authority over account approvals, rather than regional banks.
Industry Groups Back Expanded Payment Access
Several industry organizations expressed support for the proposal. These include the Financial Technology Association, Blockchain Association, The Digital Chamber, and the Crypto Council for Innovation.
According to Blockchain Association CEO Summer Mersinger, the bill addresses limited infrastructure access for digital asset firms. Meanwhile, CCI CEO Ji Hun Kim highlighted improved competition and consumer protections under the framework.
The proposal also includes insolvency protections, prioritizing customer funds if a provider fails. As discussions continue, lawmakers and industry groups focus on expanding secure and efficient payment options.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Major CEX Urges U.S. Congress to Implement Crypto Tax Exemption Threshold and Allow Staking Reward Tax Timing Choice
Major CEX urges Congress to set a minimum tax-exemption for crypto transactions and offer flexible staking-report timing, citing IRS forms show most trades under thresholds and heavy reporting burden.
The article reports that a major centralized exchange is urging U.S. Congress to establish inflation-adjusted minimum exemption thresholds for crypto transactions and to allow taxpayers to choose when to report staking rewards. It cites CoinDesk data showing 56 million crypto tax forms filed for 2025, with most transactions valued under $50, illustrating the administrative burden of current reporting rules and the need for policy changes.
GateNews1h ago
North Carolina Passes Digital Asset Law Allowing Banks to Custody Crypto
Gate News message, April 22 — North Carolina has officially introduced House Bill 1029, the Digital Asset and Stablecoin Act, marking the state's entry into crypto regulation. The bill, developed following recommendations from a dedicated blockchain committee, aims to integrate digital assets into t
GateNews1h ago
UK FCA Conducts Coordinated Raids on Illegal P2P Crypto Trading Sites in London
FCA raids eight London sites tied to unregistered P2P crypto trading, issuing cease-and-desist notices. Evidence points to money-laundering and terror-financing probes; no P2P platform is FCA-registered; enforcement signals a tougher AML crackdown.
Abstract: The FCA, with tax authorities and police, conducted surprise raids at eight London sites linked to unregistered peer-to-peer crypto trading, issuing cease-and-desist notices. The operation underpins ongoing money-laundering and terrorist-financing probes. No P2P platform is FCA-registered in the UK. Analysts view the action as a shift from statements to enforcement, signaling potential broader crackdowns under AML and financial-promotion rules for crypto assets, which remain high-risk investments.
GateNews1h ago
Bank of Korea Prioritizes CBDCs Under New Governor Shin, Maintains 2.5% Rate Amid Regional Uncertainty
Gate News message, April 22 — South Korea's central bank has entered a new monetary phase with newly appointed governor Shin Hyun-song placing central bank digital currencies (CBDCs) at the forefront of the country's financial system. In his inaugural address, Shin positioned CBDCs and bank-issued d
GateNews5h ago
CLARITY Act Faces May Delay Amid Bank Pressure Push
Senate timing pressures and hearings narrow the window, risking delay of the CLARITY Act markup decision into May.
Banking groups intensify lobbying against stablecoin yield provisions, expanding outreach to multiple committee members.
Ongoing disputes over yields, ethics, and DeFi
CryptoFrontNews6h ago
Russia's Lower House Passes Cryptocurrency Regulation Bill with Retail Investment Limits
Abstract: Russia's State Duma gave first reading to Bill No. 1194918-8, "On Digital Currency and Digital Rights," to establish a comprehensive regulatory framework for digital assets with Bank of Russia–supervised licensed intermediaries, a ban on unlicensed platforms by 2027, retail investment caps and tests, and a prohibition on using crypto for payments.
Russia's Duma advanced a bill establishing a state-regulated crypto regime: licensed intermediaries under the Bank of Russia, July 2027 ban on unlicensed platforms, retail limits and liquidity tests, and a ban on payments with crypto.
GateNews6h ago
