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Congressman’s PACE Act would plug fintechs directly into Fed rails

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Congressman’s PACE Act would plug fintechs directly into Fed rails

A new PACE Act bill would let qualified non‑bank payment firms tap Fed rails directly, cutting fees and delays while dovetailing with the GENIUS Act’s stablecoin regime.

Summary

  • The new PACE Act would let qualified non-banks plug directly into Fed payment systems.
  • Backers say it could cut delays and fees for U.S. consumers and businesses.
  • Fintech and crypto groups are lining up behind the bill’s push to open payments.

A U.S. Congressman has proposed the PACE Act, a bill that would give qualified payment companies direct access to Federal Reserve payment rails in a bid to modernize the U.S. payments system.

Bill aims to open Fed rails to non-banks

According to market reports, the proposal would allow regulated non-bank providers to connect straight to systems such as Fedwire, FedACH and FedNow, aiming to reduce settlement delays, lower transaction fees and speed up transfers for consumers and businesses.

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Early reaction has been positive from fintech and cryptocurrency industry groups, which see the legislation as a way to make the U.S. payments stack faster, cheaper and more competitive versus both private-sector alternatives and other jurisdictions experimenting with real-time rails.

A LinkedIn breakdown of the draft framework says the PACE Act would create a new federal category, “Registered Covered Provider,” overseen by the Office of the Comptroller of the Currency, giving eligible firms a statutory right to apply for Fed payment accounts without needing a full bank charter.

To qualify, companies would typically need either more than 40 state money transmitter licenses or a state depository charter, a threshold designed to capture large payment processors, remittance platforms and major crypto intermediaries already operating at national scale.

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The same analysis suggests the bill would effectively “passport” those firms across all 50 states, short-circuiting today’s costly, fragmented licensing grind and replacing it with unified federal supervision plus strict reserve rules.

Those reserve provisions mirror elements of the recently enacted GENIUS Act, requiring 1:1 backing in cash, Federal Reserve deposits, U.S. Treasury bills or tokenized equivalents, a move pitched as a way to keep customer funds safe while giving non-banks access to central bank money.

In a note cited by Politico, one supporter argued that “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,” framing the PACE Act as a consumer-focused reform rather than a giveaway to fintech.

If passed, the bill would sit alongside the GENIUS stablecoin framework and recent SEC moves on digital-asset accounting as part of a broader reshaping of U.S. market plumbing, potentially allowing large crypto and payments firms to move dollars over Fed rails instead of relying solely on correspondent banks.

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Trump administration discussing currency swap line with UAE

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How the Iran war is disrupting Dubai’s economic rise
How the Iran war is disrupting Dubai’s economic rise

The White House has discussed offering a financial lifeline to the United Arab Emirates as the U.S. war with Iran wreaks havoc on the Gulf state’s economy, a White House official told CNBC.

The UAE has not formally requested a currency swap line, and plans are not currently being drawn up, the official said, speaking on condition of anonymity to talk about nonpublic plans. Still, it is being discussed within the administration, the person said. Such a move would provide liquidity in dollars to the oil-rich UAE, but could be politically tenuous for the administration as U.S. consumers grapple with higher prices at home.

The UAE and other Persian Gulf nations have been hit hard by the U.S. war with Iran. Tehran has fired troves of missiles at the U.S.’ regional allies, damaging economic infrastructure. Iran’s closure of the Strait of Hormuz has also largely choked off oil exports that the UAE depends on for cash flow.

Read more CNBC politics coverage

The UAE is a particularly close ally of the Trump administration, and has labored to extend overtures to Washington since Trump returned to the White House. The country committed to invest more than $1 trillion in the U.S. last year. The leaders of the Gulf nation are also reportedly intertwined with President Donald Trump‘s family business.

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Trump, on CNBC’s “Squawk Box” Tuesday, appeared to say that he was willing to assist the UAE when asked directly about whether a currency swap was under consideration.

“If I could help them, I would,” the president said. “It’s been a good country. It’s been a good ally of ours.”

A potential currency swap line comes with political risk for Trump, however, as U.S. voters could view it as a bailout of a foreign country — and a wealthy one — while American consumers are swallowing higher prices.

The White House official said Trump sees the UAE as a major ally of the U.S. and is open to helping them, but cautioned that a swap is still “something we’re thinking about considering.”

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Even if the administration is open to providing support, the ultimate decision on providing swap lines rests with the Federal Reserve.

Swap lines historically have been limited to major central banks and systemically important markets, so offering one to the UAE would represent an unusual broadening of scope.

The prospect of a swap line between the U.S. and the UAE first cropped up on the sidelines of last week’s World Bank and IMF meetings in Washington, when U.S. Treasury officials pulled some Gulf allies aside to ask what they might need to rebuild their economies after the Iran war concludes, the official said. The UAE later raised a potential currency swap, but did not make a formal request for one, The Wall Street Journal first reported.

The Journal also reported the UAE warned it may have to use the Chinese yuan for oil sales and other transactions if it runs short on dollars, a threat to the supremacy of the dollar on oil markets.

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The UAE, in a statement from its embassy in the U.S. posted to X, refuted that it needs a bailout.

“Any suggestion that the UAE requires external financial backing misreads the facts,” the statement read. “The UAE and the United States will continue to prosper together for decades to come, not because one depends on the other for support, but because both benefit from one of the world’s most important economic partnerships.”

CNBC’s Jeff Cox contributed to this report.

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Prediction markets are the new secret weapon for Coinbase (COIN) and Robinhood (HOOD) growth

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Prediction markets are the new secret weapon for Coinbase (COIN) and Robinhood (HOOD) growth

Prediction markets are gaining traction as a new growth area for Coinbase (COIN) and Robinhood (HOOD), as investors look beyond a weak first quarter for crypto trading and focus on future products, according to Cantor Fitzgerald analyst Ramsey El-Assal.

El-Assal said “investors are increasingly treating the quarterly print as backward-looking,” with attention shifting to “forward-looking demand trends and the product roadmap,” including newer offerings such as prediction markets.

Both companies are expected to report softer results for the first quarter of 2026 after a pullback in crypto prices and trading activity. Bitcoin and ether (ETH) fell about 23% and 29% in the quarter, weighing on volumes across exchanges. Trading activity also slowed as the quarter progressed, with Coinbase volumes declining from roughly $66 billion in January to $54 billion in March, based on third-party data.

Cantor estimates Coinbase’s consumer and institutional trading volumes at $35 billion and $167 billion, both below Wall Street expectations. The firm also projects exchange revenue below consensus. Still, El-Assal maintained an “overweight” rating on the stock and raised his price target to $250, citing improving sentiment and longer-term growth drivers.

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Robinhood faces similar near-term pressure. The analyst expects a sequential decline in trading volumes due to softer market conditions, along with a hit to net interest revenue from lower rates. But the company’s business model offers some cushion. Higher volatility can lift trading margins, and Cantor expects stronger yields in equities and options to partly offset weaker activity.

At the same time, crypto revenue quality may come under pressure. El-Assal noted the platform’s “tiered pricing structure … earns lower yields on large active traders … and higher yields on marginal traders,” with the latter group pulling back during volatility.

Despite these headwinds, both stocks have rallied in recent weeks. Coinbase shares are up about 18% quarter-to-date, while Robinhood has climbed roughly 40% in April from late-March lows, helped by improving risk sentiment and easing geopolitical tensions.

The focus now is on what comes next. For Coinbase, investors are watching regulatory developments and new business lines. The company’s prediction markets offering, launched this year, “continues to attract meaningful interest,” El-Assal said.

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Robinhood is also leaning into prediction markets alongside other initiatives such as tokenization and private market access. The analyst said these efforts, along with regulatory changes like updates to pattern day trading rules, could help drive future growth.

Cantor maintained an “overweight” rating on Robinhood and raised its price target to $110.

The broader view, according to El-Assal, is that while current trading trends remain tied to crypto price cycles, the next phase of growth will depend more on product expansion and new use cases.

Later on Tuesday, the New York Attorney General’s office filed a lawsuit against Coinbase and fellow crypto exchange Gemini over their prediction market offerings, alleging that the products were actually gambling products and therefore in violation of state regulations.

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Whether prediction markets — specifically, sports-related prediction markets — are gambling products are not is currently a topic of debate in both state and federal courts. The Commodity Futures Trading Commission has argued that prediction markets are swaps, and therefore properly regulated by that agency at the federal level. States have argued that at least the sports-related contracts are not swaps, and should be licensed and overseen by state regulators. This question is likely to end up before the U.S. Supreme Court.

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Marvel Drops Bitcoin Mention in Daredevil Season 2

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Marvel Drops Bitcoin Mention in Daredevil Season 2

Wilson Fisk proposed diversifying his criminal empire into Bitcoin (BTC) during a flashback scene in Daredevil: Born Again, Season 2, Episode 5, marking one of the MCU’s most direct crypto references to date.

The moment aired on Disney+ on April 14 as part of “The Grand Design,” an episode built around Kingpin’s origin story.

Kingpin’s Bitcoin Pitch Got Overruled

The flashback takes place around 2014 to 2015, before the events of the original Netflix Daredevil series. Fisk, played by Vincent D’Onofrio, rides in a car with his right-hand man James Wesley, played by Toby Leonard Moore.

After discussing complications with an associate known as “The Lion,” Fisk floats the idea of Bitcoin as a way to modernize and diversify their money laundering operations.

Wesley pushes back, viewing crypto as too volatile. He steers Fisk toward the art world instead, mentioning a contact at the Scene Contempo Gallery.

Fisk initially dismisses art as pretentious but agrees to visit. That decision leads directly to his first encounter with Vanessa Marianna, setting up one of the MCU’s defining romances.

The timeline fits. BTC traded around $200 to $300 during that period, still far from mainstream recognition.

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For a forward-thinking crime boss exploring discreet financial channels, the suggestion landed as both plausible and amusing.

Crypto Fans Reacted Quickly

The line went mildly viral on social media. A post on Reddit’s r/Bitcoin community titled “Daredevil: Born Again S2 E5” drew upvotes and comments ranging from “that’s wild” to debates over whether Fisk would have been an early whale.

No later episodes have followed up on the idea. The art pivot is what stuck for Kingpin’s empire.

The post Marvel Drops Bitcoin Mention in Daredevil Season 2 appeared first on BeInCrypto.

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New York Sues Coinbase, Gemini Over Unlicensed Markets

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New York State, Polymarket, Kalshi, Prediction Markets

New York’s attorney general has filed lawsuits against crypto exchange operators Coinbase Financial Markets and Gemini Titan for allegedly violating state gambling laws, according to court records cited by Reuters.

Copies of the complaints show the state alleges both exchanges failed to obtain licenses from the New York State Gaming Commission to operate their markets, Reuters reported

“Gambling by another name is still gambling, ​and it ​is not ⁠exempt from regulation under our state laws and Constitution,” Attorney General Letitia James said in a statement.

James said the lawsuit seeks to recover alleged illegal profits from operating prediction markets in the state, as well as restitution, and would bar Coinbase and Gemini from offering such products to individuals under 21 years of age.

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New York State, Polymarket, Kalshi, Prediction Markets
Source: Office of New York State Attorney General

Related: Polymarket in talks to raise $400M at a $15B valuation: Report

State regulators crack down on prediction markets

The move fits into a broader push by state regulators, including New York, to assert control over prediction markets, which occupy a fast-growing corner of crypto commerce that allows users to bet on real-world events.

Much of the recent scrutiny has centered on platforms like Polymarket and Kalshi, which have drawn questions over whether their products fall under financial regulation or gambling laws.

The tension has also reached the federal level. The Commodity Futures Trading Commission (CFTC) has taken legal action against several states attempting to regulate prediction markets, arguing it has sole authority over the sector.

New York’s lawsuit underscores a key risk for crypto companies. Even as the federal stance has softened, state-level enforcement remains active. By targeting prediction-style markets, regulators may be opening a new front — one that could force platforms to rethink how these products are offered in major jurisdictions.

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Nevertheless, not every company is taking it lightly. As Cointelegraph reported, Polymarket has filed a lawsuit against Massachusetts, arguing the state lacks authority to regulate prediction markets approved by the CFTC.

New York State, Polymarket, Kalshi, Prediction Markets
Source: Neal Kumar, chief legal office, Polymarket

Related: NYSE parent ICE completes new $600M investment in Polymarket