A bipartisan US bill proposes opening Federal Reserve payment rails to nonbank providers. The initiative could reshape competition in payments by giving crypto firms direct access to core financial infrastructure.
The Payments Access and Consumer Efficiency Act (PACE Act) was introduced Tuesday by Representatives Sam Liccardo and Young Kim. The 23-page proposal creates a federal framework allowing qualified nonbank payment companies to access systems including Fedwire, FedNow, and FedACH.
Will Nonbanks Gain Direct Access To Fed Rails?
Under the bill, eligible firms would register through the Office of the Comptroller of the Currency (OCC, US). Requirements include maintaining 1:1 reserves, meeting risk management standards, and complying with recordkeeping rules, aligning oversight with existing banking safeguards.
Lawmakers say the goal is to reduce costs and improve efficiency in US payments. Liccardo stated the bill aims to make transactions “as easy as sending a text,” while addressing fees that affect consumers and businesses across the financial system.
The proposal arrives as digital asset firms push for equal access to banking infrastructure. Industry groups argue that exclusion from Federal Reserve systems has limited competition, particularly for crypto-native payment providers seeking to offer real-time settlement services.
The Crypto Council of Innovation said the bill would support innovation and competition, while Blockchain Association CEO Summer Mersinger called it an “important step forward.” She added that direct access would enable faster and less expensive payment services for both consumers and businesses.
The measure introduces a shift in how payment access is structured in the US, potentially reducing reliance on intermediary banks. But will regulators balance broader access with financial stability concerns as nonbanks enter critical settlement systems?
Legislative progress and regulatory response will determine whether the proposal advances, with industry participants watching for committee action and potential amendments in the coming months.
