A bipartisan bill in the US House would allow qualified nonbank payment companies to plug directly into the Federal Reserve’s core payment systems, a change supporters say could speed up transfers and cut costs for consumers.
Representatives Sam Liccardo and Young Kim on Tuesday introduced the 23-page Payments Access and Consumer Efficiency Act, or PACE Act, which would create a federal charter for certain payment providers and grant them access to Fedwire, FedNow and FedACH.
Key provisions of the PACE Act
Under the proposal, payment firms that now operate under multiple state licenses could opt into a new federal supervisory regime overseen by the Office of the Comptroller of the Currency.
To qualify, firms would need to:
- register as “qualified payment companies”
- maintain one-to-one reserves backing customer funds
- comply with federal risk-management, recordkeeping and consumer-protection standards
In return, qualifying entities would gain direct access to the Federal Reserve’s payment infrastructure, rather than routing transactions through intermediary banks.
Direct access to Fedwire, FedNow and FedACH
The bill would open three major Fed systems to eligible nonbanks:
- Fedwire funds service for large-value, real-time gross settlement
- FedNow for instant retail payments, with settlement in seconds
- FedACH for batch-processed electronic transfers
The objective, according to a summary of the legislation, is to make sending money as seamless as other everyday digital interactions, eliminating common delays of one to three business days typical for many bank transfers.
Political backing and stated goals
Liccardo argued that wider access to faster payment rails could reduce the bite of bank fees for US households by enabling cheaper, more efficient services.
Kim described the bill as a bipartisan effort to modernize the US payments backbone, framing it as a collaborative attempt to upgrade legacy systems while maintaining regulatory oversight.
Support from blockchain and digital asset groups
Major industry organizations in the blockchain and digital asset sector have lined up behind the measure’s framework.
The Crypto Council for Innovation highlighted the bill’s potential to increase competition in the payments market.
Blockchain Association chief Kristin Smith Mersinger said the legislation would, for the first time, open Fed-level access to qualified digital asset firms, allowing them to participate directly in payment flows and deliver faster services.
For digital asset platforms that specialize in payments rather than pure speculation, the act could provide a regulated path into core US financial infrastructure.
Targeting high payment and fee costs
The legislation is positioned as a direct response to high costs embedded in the current financial system.
US merchants paid a record $187.20 billion in card processing fees in 2024, according to recent estimates. One 2025 analysis suggested the average American household effectively paid close to $1,200 annually in card swipe fees passed through in higher prices.
Fee burdens extend beyond card networks. While the average overdraft fee fell to $26.77 in 2025, consumers still paid an estimated $12.1 billion in overdraft and non-sufficient funds charges in 2024.
Liccardo’s proposal aims to ease these pressures by allowing qualifying nonbank firms to move money more quickly and at lower cost, using federal payment rails rather than relying solely on traditional bank-centered channels.
How the act could change payment operations
By granting direct connectivity to FedNow and other systems, the PACE Act would allow eligible nonbank firms to:
- settle transactions in seconds instead of days
- bypass some intermediary banking relationships
- potentially reduce operational and liquidity costs tied to slow settlement
For firms operating in digital assets and other alternative payment models, this could shift the focus toward high-speed, low-cost transactional services rather than purely speculative activity.
Mersinger and other backers see this as a way to align digital asset technology with mainstream payment use cases, provided firms meet strict supervisory requirements.
Compliance hurdles and “qualified payment company” status
The bill sets a relatively high bar for participation. To secure the “qualified payment company” designation, firms would need to demonstrate:
- full one-to-one reserves for customer balances
- strong risk-management frameworks
- robust recordkeeping and compliance systems
- adherence to federal consumer-protection standards
Only platforms with mature governance and controls are likely to clear these thresholds if the act becomes law.
Market participants evaluating payment-focused platforms will need to assess which providers are actively building toward this standard, including those in the digital asset space that seek to operate within the federal framework.
Next steps in Congress
The PACE Act now heads to relevant House committees, where lawmakers will examine its impact on:
- traditional financial institutions and their role in payments
- emerging nonbank and digital asset firms seeking direct Fed access
- systemic risk, consumer protection and competitive dynamics
For traders focused on payment-related assets and platforms, the bill’s movement through committee, markup and potential floor consideration will be a key gauge of how far Washington is prepared to go in reshaping access to US payment infrastructure.
If enacted, the legislation would mark a significant structural shift, opening the Federal Reserve’s core rails to a new class of regulated nonbank operators and potentially accelerating the transition to faster, lower-cost digital payments.
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