US Lawmakers Introduce PACE Act to Streamline Fintech and Crypto Regulations

A significant regulatory development has been made in the US with the introduction of the Payment Competitiveness Act (PACE Act). This bipartisan bill, sponsored by Young Kim and Sam Liccardo from the Republican and Democratic parties respectively, seeks to establish a new national payment license for fintech and cryptocurrency companies.

The PACE Act would provide an optional regulatory framework for state-regulated deposit institutions and credit unions engaged in money transfer activities. The Office of the Comptroller of the Currency (OCC) would oversee this framework, allowing these institutions direct access to the Federal Reserve's payment services.

This approach is aligned with the 'skinny master accounts' concept previously proposed by Fed Board member Christopher Waller. Under the new regulations, the final decision-making authority regarding 'skinny master account' applications would be transferred from regional Fed banks directly to the Fed Board of Governors.