A significant bipartisan regulatory step has been taken in the United States with the introduction of the PACE Act (Payment and Clearing Enhancement Act). The bill was publicly announced by Representative Young Kim (R-CA) and Representative Sam Liccardo (D-CA), signaling rare cross-party support for cryptocurrency and financial technology legislation.
The core provision of the PACE Act is the creation of a new national payment license specifically for fintech and cryptocurrency companies. This license would establish an optional federal regulatory framework for state-regulated deposit institutions and credit unions that engage in money transfer activities. The framework would be overseen by the Office of the Comptroller of the Currency (OCC).
A critical component of the bill grants licensed institutions direct access to the Federal Reserve's payment services. This aligns with the "skinny master accounts" concept previously discussed by Fed Board Governor Christopher Waller. The legislation would also centralize authority for approving these account applications, transferring the final decision-making power from regional Federal Reserve banks directly to the Federal Reserve Board of Governors in Washington, D.C.
Beyond regulatory clarity, a stated primary goal of the PACE Act is to reduce transaction costs for consumers. The bill's sponsors argue that the current system, which involves multi-layered fees between banks for accessing payment infrastructures like the Automated Clearing House (ACH), ultimately burdens end users. The proposed model aims to foster "faster, cheaper, and more reliable payment services."
In a statement, Rep. Sam Liccardo emphasized the consumer benefit: "We can reduce bank fees that burden so many American families. Innovative payment systems that provide wider access can deliver cheaper, faster, and more reliable services. I am proud to work with Young Kim to bring this bipartisan PACE Act to life." The announcement follows the precedent set earlier this year when cryptocurrency exchange Kraken secured similar Fed payment system access.
