Direct access would cover Fedwire, FedNow, and FedACH, aiming to lower costs and speed up transfers by reducing the markup fees currently paid when connecting through banks.

Market observers are weighing whether direct Fed access blurs the line between traditional finance and the digital-asset sector, making regulatory and legislative developments crucial.

Fintechs would need to become registered covered providers, adhere to money transmitter licensing across states, maintain reserves, and comply with Bank Secrecy Act and OCC risk standards.

The OCC would manage applications through a two-phase process, with a completion deadline and a potential automatic approval if a decision isn’t made in time.

A bipartisan PACE Act would create a federal framework allowing qualified nonbank payment companies—fintechs and crypto firms—to access the Fed's payment rails, moving beyond traditional bank intermediaries.

The legislation would streamline federal registration, require OCC oversight, and impose strong risk controls, 1:1 reserve requirements, and 40-state money transmitter licensing for eligible providers.

This framework reflects ongoing industry discussion about skinny master accounts and consolidates federal decision-making at the central level.

The bill seeks to balance OCC oversight with controlled Fed rail access, addressing concerns from banks and regulators about consumer risks.

Supporters highlight faster, cheaper payments and broader access, while some banks and trade groups urge caution and robust risk management.

Consumer protections are central: firms must fully back consumer funds, keep them segregated from corporate assets, and prioritize creditor recovery for customers if a firm fails.

A notable feature is aligning access with the Fed's skinny master accounts, with final approval authority shifted to the Federal Reserve Board rather than individual Reserve Banks.

The act envisions the Fed Board overseeing skinny master account decisions to harmonize crypto firms’ access with existing Fed infrastructure.