California Reps. Republican Young Kim and Democrat Sam Liccardo introduced a new bipartisan bill on Tuesday called the Payments Access and Consumer Efficiency Act of 2026, or the PACE Act.
In the official press release, both lawmakers said the plan would help modernize the U.S. payment system.
They said that many payment app transactions still go through several middlemen before reaching the recipient. Because of this, transfers can be slow and costly.
To solve this, the bill allows qualified providers to connect directly with federal payment systems. This could make payments faster and cheaper for both consumers and small businesses.
The bill is not only about crypto. However, it matters to fintech and digital asset payment firms because several crypto industry groups supported it soon after its release.
Once approved, these companies could connect directly to key Federal Reserve services including Fedwire for large transfers, FedNow for instant payments, and FedACH for automated clearing house transactions.
This direct access could help reduce costs and settlement times for digital payment apps, including those serving cryptocurrency users.
These are some of the main payment rails used to move money across the U.S. financial system. For now, direct access is mostly limited to traditional banks.
Who qualifies under the new framework?
The bill does not throw the doors open to every startup. It sets a threshold for who can apply. A “covered provider” must already be in the payment business and meet one of several conditions.
One route is holding at least 40 active money transmitter licenses in the states where it wants to operate. The bill also covers firms that hold a state depository institution charter or a state credit union charter in the relevant state.
After that, the company would still need to register with the Comptroller of the Currency to become a “registered covered provider.”
The bill also sets clear deadlines for the application process. For early applications filed within the first 180 days after the law takes effect, the Comptroller would have up to 180 days to check if the application is complete, with a possible 60-day extension.
Once the application is marked complete, the Comptroller would then have another 180 days to approve or reject it. If the agency does not make a decision within that time, the application would be automatically approved.
For applications submitted later, the initial review to check completeness would be done within 30 days.
Lawmakers also placed limits on what an approved company could do. Under the bill, a firm could only carry out activities linked to payment services or closely related work.
In addition, the company would need to demonstrate that it has sufficient funds, strong management, appropriate technical expertise, and a governance system that fits its business. It must also demonstrate compliance with the Bank Secrecy Act.
Consumer protection is a key part of the proposal. Registered providers must keep reserves equal to 100% of what they owe customers.
These reserves can include U.S. dollars, funds held at the Federal Reserve, insured deposits, short-term Treasury securities, or approved tokenized versions of those assets.
In addition, companies that offer custody services must keep customer funds separate from company assets. This helps protect user money if the firm runs into financial problems.
The bill’s impact on crypto payments
Many crypto payment firms still depend on traditional banks to reach Federal Reserve systems. Because of that, payments often go through extra steps, which can raise costs and cause delays.
The PACE Act could change that. It would allow qualified nonbank providers to access the system more directly. As a result, users sending stablecoins or other digital assets could see lower fees and faster settlement.
“We can reduce the burden of bank fees borne by too many American families by enabling broader access to innovative payment systems that deliver cheaper, faster, more reliable service,” said Rep. Liccardo.
The proposal has also received support from crypto industry groups. Summer Mersinger, chief executive of the Blockchain Association, called the bill “an important step forward.”
She said digital asset payment firms have long been shut out of the same financial system used by their competitors.
The Crypto Council for Innovation (CCI) also supported this move. “CCI looks forward to working with Congress to advance responsible payments innovation and ensure that Americans benefit from secure and efficient payments options,” said Ji Hun Kim, CEO of CCI.
Now, the PACE Act will move to committee review in the House of Representatives. If lawmakers move it forward, they will discuss the bill, review its details, and may also make changes before a full House vote.