Bipartisan PACE Act Would Open Fed Payment Rails to Eligible Crypto Payment Firms

U.S. lawmakers have introduced a bipartisan proposal that would allow qualified payment companies—including certain crypto firms—to seek direct access to the Federal Reserve’s payment rails, a move sponsors say could speed up transactions and reduce fees for consumers and small businesses. Rep. Young Kim and Rep. Sam Liccardo unveiled the Payments Access and Consumer Efficiency Act, dubbed the Bipartisan PACE Act, on Thursday. In a press release, the lawmakers argued that the current payments ecosystem relies on too many intermediaries, creating delays and driving up costs. The bill would let eligible providers access federal payment systems directly, aiming to modernize U.S. payment infrastructure. Industry groups backing the measure include the Financial Technology Association, the Blockchain Association, the Digital Chamber, and the Crypto Council for Innovation. Blockchain Association CEO Summer Mersinger said crypto payment companies have long lacked access to the same core infrastructure available to competitors, and the bill would allow qualified nonbank providers to obtain direct access to Fed payment rails. The proposal is seen as particularly relevant for companies such as Ripple and Circle, which are awaiting the Federal Reserve’s proposed “skinny master accounts.” Kraken currently holds a Federal Reserve master account, making it the only crypto firm with direct access to the Fed’s payment infrastructure. The bill also outlines a streamlined federal registration framework, with clear standards for applicants and deadlines for regulatory review. On consumer protection, it would require payment firms to fully back customer funds, keep those funds segregated from corporate assets, and prioritize consumers in fund recovery if a firm fails. The Bipartisan PACE Act recognizes skinny master accounts while leaving final decision-making authority with the Federal Reserve Board. Its debut comes as other digital-asset efforts face headwinds in Washington, including setbacks for the CLARITY Act and growing tensions between banks and the crypto sector over stablecoin rewards, which banks say could accelerate deposit outflows. Banking groups have also opposed granting crypto firms access to Fed payment rails. Disclaimer: The information presented in this article is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for any losses arising from the use of any content, products, or services mentioned. Readers should exercise caution before taking any action related to the company.