PACE Act aims to modernize U.S. payment systems

The bipartisan PACE Act would let fintech and crypto firms access Fed payment systems, aiming to make U.S. payments faster, cheaper, and more competitive.

U.S. lawmakers have introduced the bipartisan Payments Access and Consumer Efficiency Act (PACE Act) to modernize the nation’s payment infrastructure. The bill would grant qualified non-bank payment providers—including fintech and crypto companies—direct access to Federal Reserve payment systems such as Fedwire, FedNow, and FedACH. The 23-page legislation proposes a unified federal supervisory framework, overseen by the Office of the Comptroller of the Currency, for digital payment firms licensed in at least 40 states. This aims to replace the current patchwork of state regulations, requiring providers to maintain one-to-one reserves and follow strict risk management and recordkeeping standards. The initiative is expected to reduce delays, lower costs, and accelerate fund transfers for consumers and businesses. The PACE Act has received strong support from the fintech and crypto industries, aiming to make U.S. payments faster, cheaper, and more competitive.