The Payments Access and Consumer Efficiency (PACE) Act is a bipartisan measure that was submitted in the US today by two US representatives, Sam Liccardo and Young Kim.
The proposal is anticipated to enhance the nation’s financial system and facilitate direct connections between fintech and cryptocurrency companies and Federal Reserve payment systems via a regulated pathway supervised by the Office of the Comptroller of the Currency (OCC), according to the official announcement.
In summary, this measure aims to reduce additional expenses associated with several banks processing the same transaction while facilitating quicker money transfers.
According to lawmakers, money frequently goes through several banks or middlemen before arriving at its destination under the present system. Transactions are slowed down by this procedure, which also increases costs that users must ultimately pay.
By enabling authorised payment companies to more directly use federal payment systems under a new national licensing system, the PACE Act is anticipated to address this issue. Credit unions, other nonbank payment providers, and licensed fintech companies would all be eligible for this.
Additionally, the measure creates an optional framework overseen by the Office of the Comptroller of the Currency (OCC), which permits businesses that fit the criteria to decide whether to operate in accordance with federal regulations.
Simultaneously, the Federal Reserve Board would have ultimate authority over approvals for “skinny master accounts”, which are limited-access accounts. These accounts are intended to provide restricted access to payment infrastructure without granting full banking rights, and they are connected to a concept endorsed by Federal Reserve Governor Christopher Waller.
Source: X.com
Source: X.com
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