Executive Summary
U.S. Representatives Young Kim and Sam Liccardo have introduced the Payment Access and Cost Efficiency (PACE) Act this week. The bill seeks to modernize the nation’s payment infrastructure by allowing regulated non‑bank providers, including crypto‑focused firms, to tap into federal payment rails such as FedNow. By expanding access, the legislation aims to lower fees for payment transactions across the board.
What Happened
The PACE Act was formally filed in the House of Representatives on Thursday, 2026. It outlines a clear pathway for non‑bank entities to obtain permission to use the Federal Reserve’s real‑time payment service, FedNow, as well as other federally operated payment networks. The bill’s sponsor list includes Representatives Young Kim and Sam Liccardo, both of whom have highlighted the need for a more inclusive payment ecosystem.
Background / Context
Current U.S. payment rules restrict access to the Fed’s payment rails to banks and certain credit unions. Crypto firms, which often operate as non‑bank financial service providers, must rely on intermediaries or legacy banking relationships to move funds, a process that can add layers of cost and delay. The rapid growth of digital asset transactions over the past few years has sharpened calls for a more streamlined, cost‑effective framework.
FedNow, launched in 2023, offers instant settlement for participating institutions. However, its reach remains limited to entities that meet stringent banking criteria. The PACE Act proposes to expand eligibility to regulated non‑bank providers that meet compliance standards, effectively democratizing access to the nation’s fastest payment infrastructure.
Reactions
Industry groups representing crypto businesses have welcomed the proposal, noting that direct access to FedNow could reduce reliance on costly third‑party processors. At the same time, some banking associations have expressed cautious optimism, emphasizing the need for robust oversight to prevent systemic risk.
Consumer advocacy organizations have highlighted the potential benefit of lower transaction fees for everyday users, especially those who remit money across borders using digital assets. Lawmakers on the Financial Services Committee have indicated that they will hold a briefing later this month to gather additional input from regulators and market participants.
What It Means
If enacted, the PACE Act would create a regulatory pathway for crypto firms to become direct participants in the FedNow network. This could streamline settlement times for crypto‑related payments, making them more competitive with traditional banking services. Reduced transaction fees would also improve the economics of using digital assets for everyday commerce, potentially encouraging broader adoption.
The legislation underscores a growing recognition within Congress that the financial system must evolve to accommodate emerging technologies. By framing access to federal infrastructure as a matter of cost efficiency, the bill positions itself as a pragmatic solution rather than a radical overhaul.
What Happens Next
The PACE Act now moves to committee review, where members will evaluate its compliance framework and potential impact on the broader financial system. A hearing is scheduled for early May 2026, featuring testimony from the Federal Reserve, crypto industry representatives, and consumer groups.
Following committee deliberations, the bill could be brought to the House floor for a vote later this summer. If passed, the legislation would still require Senate approval and the President’s signature before becoming law. Stakeholders are watching the timeline closely, as the outcome could set a precedent for how non‑bank fintech firms engage with federal payment infrastructure.