Key Highlights
- Two U.S. reps have introduced the PACE Act to let fintech and crypto firms get more direct access to the U.S.
- The bill aims to make money transfers faster and cheaper by reducing intermediaries in processing payments.
- It adds strict rules for safety, including protection of customer funds, federal oversight, and priority repayment for users if a company fails.
Two U.S. Representatives, Sam Liccardo and Young Kim, today introduced a bipartisan bill titled the Payments Access and Consumer Efficiency (PACE) Act in the United States.
According to the official announcement, the proposal is expected to upgrade how payments move through the financial system in the country and make it easier for fintech companies and crypto firms to connect directly to Federal Reserve payment systems through a regulated pathway overseen by the Office of the Comptroller of the Currency (OCC).
In short, this bill is designed to help users send and receive money faster while cutting down extra costs that come from multiple layers of banks processing the same transaction.
Lawmakers say current system is slow and costly
Lawmakers stated that under the current system, payments often pass through multiple banks or intermediaries before reaching their final destination. This process slows transactions and adds fees that are ultimately borne by users.
The PACE Act is expected to fix this by allowing approved payment companies to access federal payment systems more directly under a new national license system. This would apply to qualified firms such as regulated fintech companies, credit unions, and other nonbank payment providers.
The bill also sets up an optional framework that would be supervised by the Office of the Comptroller of the Currency (OCC), allowing companies that meet the requirements to choose to operate under federal standards.
At the same time, the Federal Reserve Board would have final control over approvals for limited-access accounts known as “skinny master accounts.” These accounts are linked to a model supported by Federal Reserve Governor Christopher Waller and are designed to give controlled access to payment infrastructure without full banking privileges.
“We can reduce the burden of bank fees borne by too many American families by enabling broader access to innovative payment systems that deliver cheaper, faster, more reliable service,” said Rep. Liccardo in a post on his official website. He added that the system should work better for people who rely on digital payments every day.
Rep. Young Kim highlighted real-life payment delays. She said Americans often face problems when splitting bills, paying rent, or waiting for wages to arrive. She added, “Hardworking Americans shouldn’t have to wait days to access their own money or pay extra just to move it.”
Strict rules for eligible firms
The PACE Act also introduces strict rules for companies that want access to federal payment systems. According to the proposal:
- These companies must register under a clear federal process with set timelines.
- They must also protect customer funds by keeping them fully backed, separated from company money, and not used for risky activities.
These rules are expected to keep users’ money safe at all times.
If a registered payment company fails, the bill ensures consumers are prioritized in recovering their funds. It has also reportedly received support from several major industry groups, including the Financial Technology Association, Blockchain Association, Digital Chamber, and Crypto Council for Innovation.
If passed, the bill would fix the issue of slow and expensive money transfers by updating the outdated financial systems.
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