What is the PACE Act and what does it aim to do?

The Payments Access and Consumer Efficiency (PACE) Act is a proposed US law that would allow fintech and crypto firms to access Federal Reserve payment systems directly. The goal is to reduce costs and improve speed by removing reliance on traditional banks as intermediaries.

Who introduced the PACE Act?

The bill was introduced by Young Kim and Sam Liccardo as a bipartisan effort. This cross-party support may improve its chances of progressing, although it still faces industry pushback.

How does the current US payment system work for fintech and crypto firms?

Today, nonbank firms must rely on traditional banks to access Federal Reserve systems like clearing and settlement. These banks can charge significant markups, reportedly up to 100 times the Fed’s base transaction fee.

What would change if the PACE Act is passed?

The bill would allow qualified nonbank firms to directly access systems like Fedwire, FedNow, and FedACH. This could reduce transaction costs, speed up payments, and improve efficiency for both companies and consumers.

What requirements would fintech and crypto firms need to meet?

Firms would need to register under a framework supervised by the Office of the Comptroller of the Currency (OCC). They must hold 1:1 reserves in safe assets and meet strict risk management and recordkeeping standards.

How does the PACE Act affect crypto companies specifically?

Crypto firms could gain direct access to payment rails, reducing dependence on banks and lowering operational costs. This could improve margins and enable faster fiat-to-crypto transactions, which is a key friction point today.

Which crypto and fintech groups support the PACE Act?

Groups including the Blockchain Association, Crypto Council for Innovation, Financial Technology Association, and Digital Chamber have endorsed the bill. They argue it would level the playing field with traditional financial institutions.

What is the “skinny master account” concept mentioned in the bill?

The concept, supported by Christopher Waller, refers to limited-access Fed accounts for nonbanks. These accounts allow payment access without offering full banking services, reducing systemic risk.

PACE Act opens fed rails to crypto firms

Written by Mahathir BayenaPublished Apr. 22 2026Last Updated Apr. 22 2026

US Representatives Young Kim and Sam Liccardo have introduced the Payments Access and Consumer Efficiency Act, aiming to give fintech and crypto firms direct access to Federal Reserve payment systems.

The proposal seeks to bypass traditional banking intermediaries, which currently charge nonbank providers significant markups—sometimes up to 100 times the Fed’s base transaction fee.

“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 Liccardo.

Under the bill, qualifying firms could opt into a regulatory framework overseen by the Office of the Comptroller of the Currency, allowing access to Fedwire, FedNow, and FedACH payment rails.

Participants would be required to hold 1:1 reserves in liquid assets and meet strict compliance standards, aligning with the “skinny master account” model backed by Christopher Waller.

Crypto exchange Kraken recently became the first digital asset firm to secure such access, highlighting growing momentum for direct integration with US financial infrastructure.

The bill has drawn support from groups including the Blockchain Association, though it now faces committee review where opposition from traditional banking interests is expected.