A new bill could upend who gets to move money in the U.S., giving fintechs and crypto firms direct access to the Federal Reserve’s payment system—and potentially lowering costs for millions of users.
Known as the Payments Access and Consumer Efficiency (PACE) Act, the bill would let qualified nonbanks connect directly to Fed payment services, provided they meet strong consumer protection standards.
Currently, only traditional banks can connect directly to the Fed’s clearing and settlement systems. The bill would create a new category—Registered Covered Provider—allowing eligible nonbank payment companies to apply for Fed accounts without obtaining a full bank charter, under a supervisory framework run by the Office of the Comptroller of the Currency.
These providers would gain access to Fedwire, FedNow, and FedACH. According to the bill’s fact sheet, banks currently charge nonbank providers markups of up to 100 times the Fed’s own per-item fee. The bill’s sponsors argue the system was built for bank branches and paper checks—not digital payments—and that only traditional banks still have direct access to the Fed’s infrastructure.
More Ways to “Be Like a Bank”
Under the proposal, companies would typically need either more than 40 state money transmitter licenses or a state depository charter to qualify. The goal is to extend access to payment processors, remittance platforms, and crypto intermediaries already operating at national scale.
“It gives fintechs even more tools to be like a bank,” said Ben Danner, Senior Analyst of Debit at Javelin Strategy & Research. “It goes further than the Fed’s ‘skinny’ accounts that enable access to FedACH in addition to the real time rails. Access to FedACH is highly regulated right now, so only commercial banks have access. The law would be bad for those financial institutions that act as intermediaries for fintechs and crypto companies.”
The Effect on Crypto Firms
The bill follows news last month that crypto exchange Kraken received one of the so-called skinny accounts with the Fed—marking the first time a crypto firm secured direct access to central bank payment rails. Kraken can now hold U.S. dollar balances directly at the Federal Reserve, reducing routing complexity and streamlining settlement. The result? Faster transactions with fewer points of failure.
However, the “skinniness” of the account means it does not pay interest on balances or provide access to the Fed’s discount window. It is, in effect, a payments-only account.
“It removes one of the biggest structural disadvantages crypto firms face, which is forced reliance on banks and other intermediaries,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “That forced dependence adds costs, latency, and counterparty risk. This can also help firms like Kraken turn into payment and settlement platforms, not just trading venues. This has the potential to compress margins in banks who often charge multiples of the Fed cost.”
The bill has been endorsed by the Financial Technology Association, the Blockchain Association, and the Crypto Council for Innovation.
“For too long, digital asset payment companies have been locked out of the same financial infrastructure that their competitors have access to,” Blockchain Association CEO Summer Mersinger said in a statement.
Who Will Reap the Savings?
While sponsors Reps. Young Kim (R-Calif.) and Sam Liccardo (D-Calif.), argue the bill will ultimately reduce costs for consumers, that outcome is not guaranteed.
“It cuts out the intermediary and saves money on the transaction,” Danner said. “But will they pass that saving on to the end user? Not sure.”
Even if consumers don’t see immediate savings, the bill includes strong protections. Customer funds must be fully backed, held separate from company assets, and maintained with 1:1 reserves in safe, liquid assets. In the event of a failure, consumers would be prioritized in recovering funds.
The PACE Act now heads to committee, though it still faces a long legislative path. As it advances, traditional banks are expected to push back against any erosion of their role as payment intermediaries.
