PACE Act 2026: Crypto Firms to Gain Direct Federal Reserve Access

U.S. Representatives Young Kim (R-CA) and Sam Liccardo (D-CA) have officially introduced a sweeping piece of bipartisan legislation that could permanently alter the digital asset landscape in the United States. Unveiled on April 21, 2026, the 23-page Payments Access and Consumer Efficiency (PACE) Act targets a long-standing point of friction for nonbank payment providers: banking intermediaries. By offering direct Federal Reserve payment rails crypto access, the legislation seeks to bypass traditional legacy banks, potentially cutting payment processing fees drastically and vastly accelerating settlement times for American consumers.

The PACE Act 2026: Bypassing Legacy Banking Monopolies

For years, digital asset companies and financial technology operators have been forced into a corner, relying on traditional commercial banks to connect to central banking infrastructure. This multi-layered system creates expensive choke points, slowing down simple transactions like vendor checks, direct deposits, and peer-to-peer transfers. The PACE Act 2026 fundamentally changes this dynamic by proposing an optional, unified national payment license.

Currently, payment providers operating across state lines must navigate a fragmented regulatory maze, often managing up to 40 distinct state-level money transmitter licenses simultaneously. The newly proposed legislation allows these institutions to opt into a federal supervisory framework administered by the Office of the Comptroller of the Currency (OCC). By doing so, qualified nonbank providers will finally eliminate their reliance on slow, costly intermediary banks to clear transactions.

Streamlining Fintech Fed Access

If enacted, the bill would empower enrolled digital asset companies to plug directly into core national settlement networks. This specific fintech Fed access includes connectivity to the Fedwire settlement system, the automated clearinghouse network FedACH, and the central bank's instant payment service, FedNow. Lawmakers are positioning this direct integration as a way to make sending money across the country as effortless and affordable as sending a text message or streaming a television show.

Key Provisions of the Young Kim Crypto Bill

Gaining direct entry to the central bank's plumbing is not without strict prerequisites. The Young Kim crypto bill outlines rigorous standards designed to protect consumer funds and ensure systemic stability. Companies that register for the new OCC supervision must meet comprehensive risk management and record-keeping protocols.

Most notably, the legislation mandates that participating providers maintain a strict 1:1 reserve ratio for consumer funds. These customer assets must be completely segregated from the company's operational capital. In the event of a corporate failure, the bill establishes clear legal guidelines giving consumers absolute priority in recovering their funds, a safeguard intended to prevent a repeat of historical industry bankruptcies.

The framework also formalizes the concept of "skinny master accounts," an idea previously floated by Federal Reserve Governor Christopher Waller. To ensure consistent application of the law, the final authority to approve these specialized master accounts will shift from regional reserve banks directly to the Federal Reserve Board of Governors.

Sam Liccardo PACE Act Garners Massive Industry Support

The reception from the digital asset and financial technology sectors has been overwhelmingly positive. Industry leaders are celebrating the Sam Liccardo PACE Act as a critical modernization effort. The Financial Technology Association, The Digital Chamber, and the Crypto Council for Innovation (CCI) swiftly endorsed the legislation upon its announcement.

Ji Hun Kim, CEO of the CCI, highlighted that the measure would dramatically improve market competition by granting well-regulated institutions the tools they need to rival traditional banking entities. Representative Liccardo echoed this sentiment, stating that the current burden of bank fees borne by cash-strapped American families can be heavily mitigated by allowing innovative payment platforms to deliver cheaper, faster, and more reliable services.

Blockchain Association PACE Act Endorsement

The Blockchain Association PACE Act response further solidifies the industry's united front. Summer Mersinger, CEO of the Blockchain Association, called the legislative push an "important step forward". Mersinger pointed out that digital asset companies have been unfairly locked out of the exact financial infrastructure their traditional banking competitors freely enjoy. Securing this access, she noted, creates a level playing field that directly benefits American businesses and consumers.

Shaping the Future of US Crypto Banking Regulation

The introduction of this bipartisan bill marks a pivotal moment in US crypto banking regulation. As the digital asset market matures, the demand for clear, federal-level frameworks has reached a fever pitch. Replacing a disjointed state-by-state licensing patchwork with a cohesive federal standard not only improves domestic operational efficiency but also aligns American payment infrastructure with global real-time settlement standards.

While the bill still faces the standard legislative hurdles in Washington, its bipartisan backing and robust industry support indicate a shifting tide on Capitol Hill. By focusing squarely on consumer benefits—specifically lower fees and faster transaction times—lawmakers have crafted a compelling argument for finally letting nonbank innovators access the deepest layers of the American financial system.