Lawmakers Introduce PACE Act to Speed Up Payments

US lawmakers have introduced legislation aimed at reshaping how payments flow through the financial system, with a focus on speed, cost and competition.

The Payments Access and Consumer Efficiency (PACE) Act, put forward by Representatives Young Kim and Sam Liccardo, proposes giving fintech and crypto firms direct access to Federal Reserve payment infrastructure.

The move is designed to cut out traditional banking intermediaries, which currently sit between payment providers and core payment rails, often adding cost and complexity. For customers, it aims to help them send and receive money faster and with fewer fees.

Under the proposed framework, qualifying firms would be able to access systems such as Fedwire, FedNow and FedACH through a regulatory regime overseen by the Office of the Comptroller of the Currency.

Currently, many digital payments pass through multiple intermediaries before reaching their destination, slowing transactions and increasing fees.

Proponents of the PACE Act argue that enabling direct access to federal payment rails could streamline this process, reducing friction for consumers and small businesses while encouraging innovation across the payments ecosystem.

The bill has already secured backing from key industry bodies, including the Financial Technology Association, Blockchain Association, The Digital Chamber and Crypto Council for Innovation.

Summer Mersinger, CEO of Blockchain Association, said: “For too long, digital asset payment companies have been locked out of the same financial infrastructure that their competitors have access to."

“The PACE Act allows qualified nonbank providers to obtain direct access to Federal Reserve payment rails, enabling faster, less expensive, and more competitive payment services for American consumers and businesses." 

Alongside direct access, the legislation outlines a federal registration pathway, enhanced consumer protections, robust regulatory oversight and insolvency safeguards that prioritize customer funds, aiming to balance innovation with financial stability.