Eleanor Terrett@EleanorTerrett
🚨NEW: This morning, @RepYoungKim and @RepLiccardo unveiled the bipartisan PACE Act to create a national payments license for fintechs and crypto companies.
The bipartisan bill would let regulated state depository institutions and credit unions that conduct money transmission be regulated under a new optional framework overseen by the @USOCC.
This bill would permit these institutions to access Federal Reserve payment services, aligning with Federal Reserve Governor Christopher Waller’s “skinny master accounts” concept, which @krakenfx gained access to earlier this year. The bill also gives the Federal Reserve Board, and not the individual Reserve Banks, final decision-making authority over skinny master account applications.
It also looks to reduce costs for consumers, who often end up paying fees passed down layers of banks just to access ACH.
“We can reduce the burden of bank fees borne by too many American families by enabling broader access to innovative payment systems that deliver cheaper, faster, more reliable service,” said @RepLiccardo. “I’m proud to partner with Young Kim on this bipartisan PACE Act, to modernize our payment system for the benefit of millions of cash-strapped Americans.”