Fed payment access for nonbank providers advances with PACE Act
The PACE Act, a 23-page bill introduced in the U.S. House, would give qualified non-bank payment providers direct access to Federal Reserve payment rails (Fedwire, FedNow, FedACH) under OCC supervision. By creating a unified federal onboarding standard—requiring firms to be licensed in at least 40 states and to hold one-to-one reserves—the measure aims to cut costs and speed payments. Industry groups in crypto and digital payments have endorsed the proposal, saying it will boost competition, speed market entry for crypto-focused payment firms, and reduce reliance on traditional banks. If enacted, the law could accelerate growth for crypto payment companies (positive for BTCUSD and the sector), increase financial inclusion, and pressure incumbent banks’ payment revenues.