What is the PACE Act and why does it matter for crypto and fintech?

[kevin1]

Q: What is the PACE Act?
The Payments Access and Consumer Efficiency (PACE) Act is a bipartisan bill introduced by Young Kim and Sam Liccardo. It aims to give fintech and crypto companies direct access to the Federal Reserve’s payment systems instead of relying on traditional banks as intermediaries.

Q: What problem is it trying to solve?
Right now, only banks can directly access Fed payment rails, meaning fintechs and crypto firms must go through them — often paying high fees. The bill seeks to reduce these costs and improve efficiency by allowing qualified nonbanks to connect directly.

Q: What systems would companies gain access to?
Approved firms could use key infrastructure like Fedwire, FedNow, and FedACH, enabling faster and cheaper payments.

Q: Are there requirements for companies?
Yes. Firms would need to register under a federal framework overseen by the Office of the Comptroller of the Currency and maintain strict safeguards like 1:1 reserves, risk controls, and proper recordkeeping.

Q: Why is this important for crypto?
It could significantly level the playing field, giving crypto platforms similar infrastructure access as banks — something industry groups say has long been restricted. This could lead to faster payments, lower fees, and broader adoption of digital asset services.

[lingriiddd]

removing banks from the middle layer sounds efficient and mildly terrifying