Bipartisan PACE Act Would Let Nonbank Payment Firms Tap Fed Payment Rails

Odaily Planet Daily reports that a bipartisan group of U.S. lawmakers has introduced the PACE Act, legislation that would give compliant nonbank payment institutions direct access to the Federal Reserve's payment system, a move that has drawn support from the cryptocurrency industry. The bill would create a federal framework overseen by the Office of the Comptroller of the Currency, offering payment companies a single registration route. Participating firms would be required to hold 1:1 reserves and meet risk controls and recordkeeping standards. Eligible institutions would be able to connect to key payment networks including Fedwire, FedNow and FedACH. Backers say the proposal is intended to lower payment costs and improve speed and reliability, with the ambition of making transfers as easy as sending a text message. Industry participants argue it could weaken traditional banks' grip on core payment infrastructure, opening a critical channel for stablecoins and crypto payment providers and supporting greater openness and competition across the financial system.