On April 21, 2026, a bipartisan group of U.S. Representatives introduced the Payments Access and Consumer Efficiency (PACE) Act, a legislative measure designed to streamline how qualified fintech and cryptocurrency payment providers interact with the U.S. federal payment infrastructure. The bill, sponsored by Representative Young Kim (R-CA) and Representative Sam Liccardo (D-CA), seeks to create a national payments license that would allow eligible companies to access critical federal payment rails—such as FedACH and FedNow—on terms more comparable to traditional banking institutions. By establishing a uniform federal registration process, the legislation aims to foster a more competitive and efficient digital transfer ecosystem, ultimately intended to lower costs and accelerate transaction speeds for consumers and small businesses alike.
Streamlined Access and Federal Oversight
The core mechanism of the PACE Act is the creation of a “registered covered provider” status overseen by the Office of the Comptroller of the Currency (OCC). Under this framework, companies that meet specific stringent criteria—including holding money transmitter licenses in at least 40 states and maintaining 1:1 reserves—could apply for direct access to federal payment systems. This approach is designed to resolve long-standing frustrations among nonbank fintechs, which have previously been forced to rely on traditional bank partnerships to access core payment networks. The bill also incorporates features aligned with the Federal Reserve’s “skinny master account” concept, aiming to shift final decision-making authority for these accounts to the Federal Reserve Board to ensure consistency, while simultaneously imposing robust risk management, record-keeping, and compliance requirements under the Bank Secrecy Act.
Industry Impact and Legislative Context
The proposal has garnered support from major industry groups, including the Financial Technology Association, the Blockchain Association, the Digital Chamber, and the Crypto Council for Innovation, who argue that the bill strikes a necessary balance between promoting technological innovation and maintaining essential regulatory guardrails. Proponents suggest that by legitimizing and integrating well-regulated fintech firms into the primary payment rails, the U.S. can modernize its financial services to match the efficiency of other leading global economies. While the PACE Act currently awaits further legislative action in the House with no formal Senate companion bill yet introduced, it represents a significant push to harmonize the fragmented state-by-state licensing regime into a cohesive federal framework.
This legislation is widely viewed as a pivotal step in the ongoing effort to integrate digital asset and fintech innovation into the broader, regulated U.S. financial system, reflecting a broader trend toward modernization observed in 2026 policy developments. By creating a clearer, standardized pathway for nonbank institutions, the PACE Act seeks to address the competitive disadvantage fintechs face when routing transactions through legacy banking layers, potentially reducing costs by eliminating intermediary fees and enhancing real-time settlement capabilities for everyday American transactions.
