U.S. House Introduces PACE Act to Grant Qualified Digital Asset Firms Direct Access to Federal Reserve Payment System

Gate News message, April 22 — The U.S. House of Representatives introduced the Payments Access and Consumer Efficiency (PACE) Act on April 21, a bill that would allow qualified digital asset, fintech, and other service providers to access the Federal Reserve's payment system directly. The bipartisan legislation was introduced by Representatives Young Kim (R) and Sam Redo (D).

The PACE Act aims to reduce payment delays and fees by enabling qualified service providers to connect directly to the Fed's payment infrastructure. The bill covers over 40 money transmitter license holders and requires them to comply with federal regulatory frameworks under the Office of the Comptroller of the Currency (OCC) supervision. Key provisions include streamlined federal registration procedures, consumer protections, direct access to the Federal Reserve payment system, supervisory enforcement mechanisms, and bankruptcy protections.

Rep. Kim stated that Americans often face payment delays and increased fees due to outdated systems, while Rep. Redo emphasized that expanding access to innovative, faster, cheaper, and more stable payment services would reduce banking fees for consumers. Sommer Mussinger, CEO of the Blockchain Association, noted that digital asset firms have been excluded from competitors' financial infrastructure, and direct Fed payment system access would enable qualified non-bank financial institutions to offer faster, cheaper, and more competitive services. Cody Karbowski, CEO of the Digital Chamber of Commerce, added that the bill would support responsible innovation in payment infrastructure.