Bipartisan PACE Act would let nonbanks access Fed payment rails

Reps. Sam Liccardo (D-Calif.) and Young Kim (R-Calif.) introduced the 23-page Payments Access and Consumer Efficiency Act, or PACE, on Tuesday. The bill would allow certain qualified nonbank payment firms to obtain direct access to Federal Reserve payment systems if they opt into a federal supervisory framework.

Under the bill, the Office of the Comptroller of the Currency would administer the optional federal supervision for nonbank payment service providers, including companies such as money transmitters that now operate under multiple state licenses. Eligible firms choosing federal supervision would register with the OCC and meet standards set in the legislation.

The proposal requires qualifying providers to hold one-to-one reserves, follow defined risk-management and recordkeeping rules, and meet other operational requirements spelled out in the bill. Firms that meet those conditions would be eligible to use the Fed’s core settlement and payment services: Fedwire, FedNow and FedACH.

Fedwire handles real-time settlement for large-value transfers, FedNow is the Federal Reserve’s instant retail payments service, and FedACH processes batch automated clearing-house transactions. Currently, most nonbank payment companies access these services indirectly through partner banks.

Liccardo said the bill aims to lower costs and speed payment flows, adding, “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.” He described the measure as a bipartisan effort to modernize the payment system.

Industry groups representing digital-asset and payments firms expressed support. Ji Hun Kim, chief executive of the Crypto Council for Innovation, said the proposal would bolster competition and called for further work with Congress to advance responsible payments innovation. Summer Mersinger, chief executive of the Blockchain Association, described the legislation as “an important step forward,” saying it would allow qualified digital-asset payment companies to obtain direct access to Federal Reserve payment rails.

The bill’s fact sheet frames its goal as making payments easier and less costly for consumers by reducing reliance on correspondent banking paths that can add fees. If enacted, the OCC-administered framework would be optional; eligible nonbank firms could choose federal oversight to gain direct Fed access. Lawmakers and industry participants continue to debate how to balance expanded access with oversight and safeguards for financial stability and consumer protection.