Bipartisan PACE Act looks to open Fed payment rails to nonbanks, draws crypto support
California Reps. Sam Liccardo and Young Kim introduced a bill that would allow certain providers access to the central bank.
California Representatives Sam Liccardo and Young Kim have introduced the bipartisan Promoting American Competitiveness and Efficiency (PACE) Act, legislation designed to grant certain nonbank financial service providers access to Federal Reserve payment systems. The bill has garnered support from crypto industry stakeholders who see expanded Fed payment rail access as beneficial for digital asset operations.
Currently, direct access to Federal Reserve payment systems is primarily limited to traditional banks and credit unions. The proposed legislation would establish a framework allowing qualified nonbank entities to connect directly to these critical payment infrastructures, potentially streamlining financial transactions and reducing reliance on traditional banking intermediaries.
The crypto industry views this development as potentially transformative for digital asset businesses, which often face challenges accessing banking services and payment systems. Direct Fed payment rail access could reduce operational costs, improve transaction speeds, and provide more reliable payment processing for crypto companies. This could particularly benefit stablecoin issuers, crypto exchanges, and other digital asset service providers that currently depend on banking partnerships for payment processing.
Industry observers will be monitoring the bill's progress through Congress and any specific eligibility requirements that may be established for nonbank access. The legislation's bipartisan nature suggests potential for advancement, though implementation details and regulatory oversight mechanisms remain to be determined.
Source: The Block
