U.S. Representatives Young Kim (R-CA) and Sam Liccardo (D-CA) introduced the Payments Access and Consumer Efficiency (PACE) Act on April 21, 2026. The bipartisan bill would create a national payments license for fintechs and crypto companies. It would allow qualified nonbank payment providers to register with the Office of the Comptroller of the Currency (OCC) and access Federal Reserve payment infrastructure directly. The legislation targets a long-standing bottleneck in U.S. payments, where nonbank firms must route transactions through intermediary banks, adding cost and delay for consumers.
“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,” Rep. Liccardo said in a statement. “I’m proud to partner with Young Kim on this bipartisan PACE Act, to modernize our payment system for the benefit of millions of cash-strapped Americans.”
🚨NEW: This morning, @RepYoungKim and @RepLiccardo unveiled the bipartisan PACE Act to create a national payments license for fintechs and crypto companies.
— Eleanor Terrett (@EleanorTerrett) April 21, 2026
The bipartisan bill would let regulated state depository institutions and credit unions that conduct money transmission… pic.twitter.com/gDx2JqpZnQ
How the PACE Act National Payments License Works
The PACE Act establishes an optional federal registration framework under the OCC. Nonbank payment providers, including money transmitters, fintechs, and crypto payment firms, could apply for a national payments license. However, the bill sets a high bar for eligibility. Applicants must hold money transmitter licenses from at least 40 states before they can apply.
Once registered, firms must maintain 1:1 reserves backing all customer funds. They must also implement OCC-prescribed risk management protocols and record-keeping systems. Additionally, the bill requires strong consumer protections, including fund segregation from company assets and consumer priority in insolvency proceedings.
The OCC would have 180 days to determine whether an application is complete. It would then have an additional 180 days to grant or deny the application. Notably, if the OCC fails to issue a decision within that second window, the application would receive automatic approval.
Skinny Master Accounts and Direct Fed Access
At the core of the PACE Act is a provision granting registered firms access to Federal Reserve payment services. This includes Fedwire, FedNow, and ACH, the backbone systems that move money across the U.S. financial system. Currently, nonbank firms must rely on intermediary banks to access these rails, which adds fees and processing time at each layer.
The bill aligns with Federal Reserve Governor Christopher Waller’s “skinny master accounts” concept. These accounts provide core payment connectivity without extending the full range of traditional banking privileges. Firms with skinny accounts cannot access the Fed’s discount window or earn interest on reserve balances. Instead, they gain the ability to settle payments directly through the Fed.
Kraken Financial demonstrated this model in practice. In March 2026, Kraken became the first digital asset bank to receive a Federal Reserve master account. The Kansas City Fed approved a limited-purpose account for an initial one-year term, with restrictions tailored to Kraken’s business model and risk profile.
Importantly, the PACE Act would shift final decision-making authority over skinny master account applications to the Federal Reserve Board in Washington. Individual Reserve Banks would no longer have the final say. This change addresses a key criticism from fintech and crypto firms, which have argued that inconsistent treatment across regional Fed banks has created an uneven playing field.
Reducing Costs for Consumers
The PACE Act directly targets the fees consumers pay when money moves through the banking system. Today, many everyday transactions, such as direct deposits, peer-to-peer transfers, and vendor payments, pass through multiple intermediary banks before reaching their destination. Each layer adds processing time and cost. Those costs ultimately land on consumers and small businesses.
By allowing qualified nonbank providers to connect directly to Fed payment rails, the bill aims to eliminate unnecessary intermediaries. Faster settlement through FedNow and cheaper access to ACH could lower the cost of basic financial services for millions of Americans. Rep. Kim emphasized that the legislation focuses on making everyday payments faster, cheaper, and more efficient.
How the PACE Act Complements the GENIUS and CLARITY Acts
The PACE Act does not exist in isolation. It arrives alongside two other major pieces of federal crypto legislation, forming what is shaping up to be a three-pillar regulatory framework for digital assets in the United States.
The GENIUS Act became law on July 18, 2025, when President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act. The GENIUS Act establishes a federal regulatory framework specifically for payment stablecoins. It requires issuers to maintain 1:1 reserves backed by high-quality assets like Treasury bills and bank deposits. The OCC oversees nonbank stablecoin issuers, while bank subsidiaries answer to their existing federal regulators. Critically, the GENIUS Act clarifies that payment stablecoins are neither securities nor commodities, removing them from SEC and CFTC jurisdiction.
The CLARITY Act passed the House of Representatives on July 17, 2025, with a bipartisan 294-134 vote. The Digital Asset Market Clarity Act tackles the classification problem that has plagued the crypto industry for years. It creates a formal definition of “digital commodity” and grants the CFTC exclusive jurisdiction over digital commodity spot markets. Meanwhile, it preserves SEC authority over investment contract assets. The bill also introduces a new capital-raising framework tailored to digital asset projects. It has stalled in the Senate over disagreements about stablecoin yield restrictions.
Together, these three bills address distinct but interconnected layers of the crypto regulatory stack. The GENIUS Act governs how stablecoins are issued and backed. The CLARITY Act determines how digital assets are classified and which regulators oversee their markets. The PACE Act then handles the infrastructure layer, determining who can access the payment rails that move these assets through the financial system.
Without the PACE Act, stablecoin issuers regulated under the GENIUS Act and digital asset platforms operating under the CLARITY Act would still depend on intermediary banks to settle transactions. The PACE Act closes that gap by giving qualified firms direct access to the same payment infrastructure that traditional banks use. This creates a more complete and functional regulatory environment where crypto and fintech companies can issue compliant stablecoins, operate regulated markets, and move money efficiently, all within clearly defined federal frameworks.
Crypto and Fintech Industry Backs the Bill
The PACE Act has drawn broad support from the digital asset and fintech sectors. Blockchain Association CEO Summer Mersinger called the bill “an important step forward.” She noted that “digital asset payment companies have been locked out of the same financial infrastructure that their competitors have access to” for too long.
The Financial Technology Association (FTA) applauded the bipartisan effort, emphasizing the bill’s potential to empower consumers and small businesses. The Digital Chamber praised it as a “thoughtful, forward-looking” evolution of the payments system. The Crypto Council for Innovation (CCI) also expressed support, backing the uniform OCC framework and Fed access for firms that meet consumer protection standards.
The bill now heads to committee, where it will face scrutiny from banking interests that have historically opposed expanding Fed access to nonbank firms. However, its bipartisan backing and alignment with the existing GENIUS Act framework may give it a stronger path forward than previous attempts to open federal payment infrastructure to fintechs and crypto companies.
*Disclaimer: News content provided by Genfinity is intended solely for informational purposes. While we strive to deliver accurate and up-to-date information, we do not offer financial or legal advice of any kind. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial or legal decisions. Genfinity disclaims any responsibility for actions taken based on the information presented in our articles. Our commitment is to share knowledge, foster discussion, and contribute to a better understanding of the topics covered in our articles. We advise our readers to exercise caution and diligence when seeking information or making decisions based on the content we provide.
