Daily Vecsignal - Bipartisan PACE Act Targets Cheaper Payments for Fintech and Crypto Firms

 April 22, 2026 | VECS News

A new bipartisan bill introduced in the US House of Representatives would grant qualified nonbank payment companies including cryptocurrency firms direct access to Federal Reserve payment services, potentially slashing transaction costs and processing times for millions of Americans. The Payments Access and Consumer Efficiency (PACE) Act, introduced by Representatives Young Kim (R-CA) and Sam Liccardo (D-CA), aims to modernize the US payment system by breaking the traditional banking monopoly on federal payment rails .

Currently, only traditional banks can connect directly to the Fed's clearing and settlement systems. Nonbank providers must route payments through intermediary banks, often paying markups that can reach up to 100 times the Fed's own per-item fee . The PACE Act would change this by creating an optional federal supervisory framework administered by the Office of the Comptroller of the Currency (OCC), allowing qualified payment companies to access Fedwire, FedNow instant payments, and FedACH systems directly .

For cryptocurrency investment instruments, this development carries significant implications. The bill aligns with Federal Reserve Governor Christopher Waller's "skinny master accounts" concept, which Kraken became the first crypto exchange to obtain earlier this year . Direct Fed access would enable crypto payment firms to offer faster and cheaper fiat on-ramps and off-ramps, reducing the friction that has historically hindered mainstream crypto adoption. Lower transaction costs and faster settlement times could increase trading volumes and improve liquidity across crypto markets .

The legislation requires qualified providers to maintain 1:1 reserves using safe and liquid assets including cash, Federal Reserve deposits, US Treasury bills, or tokenized equivalents . This reserve requirement mirrors the recently enacted GENIUS Act for stablecoins, creating a coherent regulatory framework for digital asset payment companies. Companies must also meet risk management and recordkeeping standards while holding consumer funds separate from company assets with insolvency protections prioritizing consumers .

Major crypto industry groups have thrown their support behind the bill. Endorsements come from the Blockchain Association, the Crypto Council for Innovation (CCI), the Financial Technology Association, and The Digital Chamber . Summer Mersinger, CEO of the Blockchain Association, called the PACE Act "an important step forward," noting that digital asset payment companies have been "locked out of the same financial infrastructure that their competitors have access to" for too long .

The impact on crypto investment instruments would be substantial according to market analysts. SignalPlus analysis describes the bill as "bullish for crypto-market plumbing" because it potentially expands access to central bank money rails for regulated payment and crypto intermediaries . When payment rails become faster and cheaper, this typically reduces frictions around fiat on-ramps and off-ramps, settlement timing, and liquidity management. These factors support higher trading activity and smoother US dollar flow in and out of crypto markets .

Ji Hun Kim, CEO of the Crypto Council for Innovation, stated that expanding access to Federal Reserve payment services for well-regulated institutions would improve competition while ensuring strong consumer protection standards are met. The council looks forward to working with Congress to advance responsible payments innovation . For crypto investors, the PACE Act represents a structural improvement to market infrastructure that could lower barriers to entry, reduce costs, and potentially attract institutional capital seeking more efficient payment rails.

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**This news was obtained and summarized from various sources on the internet.