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Bipartisan PACE Act Targets Cheaper Payments for Fintechs and Crypto Firms

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Bipartisan PACE Act Targets Cheaper Payments for Fintechs and Crypto Firms

US Reps. Young Kim (R-CA) and Sam Liccardo (D-CA) introduced the bipartisan Payments Access and Consumer Efficiency (PACE) Act on Tuesday, proposing a federal framework that would give fintechs and crypto companies direct access to Federal Reserve payment rails.

The bill targets a longstanding bottleneck in US payments. Currently, only legacy banks can connect directly to the Fed’s clearing and settlement systems, charging nonbank providers markups of up to 100 times the Fed’s own per-item fee, according to the bill’s fact sheet.

What the PACE Act Would Change

Under the proposed law, qualified nonbank payment companies could register for an optional federal supervisory framework administered by the Office of the Comptroller of the Currency (OCC).

Registered providers would gain access to Fedwire, FedNow, and FedACH.

The bill requires providers to maintain 1:1 reserves in safe, liquid assets and meet risk management and recordkeeping standards.

It also aligns with the “skinny master accounts” concept championed by Federal Reserve Governor Christopher Waller.

Crypto exchange Kraken became the first digital asset firm to receive such an account earlier in March.

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The measure arrives alongside other pro-crypto legislative efforts, including the GENIUS Act for stablecoins.

However, the PACE Act focuses narrowly on payment infrastructure rather than market structure or token classification.

“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,” Eleanor Terrett reported, citing Rep. Sam Liccardo.

Industry Groups Rally Behind the Bill

The Blockchain Association, Crypto Council for Innovation, Financial Technology Association, and the Digital Chamber all endorsed the PACE Act.

Blockchain Association CEO Summer Mersinger called it an “important step forward,” noting that digital asset payment companies have long been “locked out” of financial infrastructure available to competitors.

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The bill now heads to committee, where traditional banking lobbies may push back against provisions that reduce their role as intermediaries in payments.

The post Bipartisan PACE Act Targets Cheaper Payments for Fintechs and Crypto Firms appeared first on BeInCrypto.

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Crypto World

Tron founder Justin Sun Sues World Liberty Over Token Freeze

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Tron founder Justin Sun Sues World Liberty Over Token Freeze

Sun said the lawsuit is to protect his rights as a WLFI token holder and doesn’t change his support of US President Donald Trump and his administration’s efforts to make the US crypto-friendly.

Tron founder Justin Sun said he is suing Trump-family-backed World Liberty Financial for allegedly freezing his tokens and threatening to burn them “without any proper justification.” 

In a post to social media on Wednesday, Sun said the suit, filed in a California federal court, was meant to protect his rights as a token holder.

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“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts,” he added.

Sun is the largest individual investor in World Liberty, a project tied closely to the Trump family.

Source: Justin Sun

Sun previously threatened legal action earlier this month over lengthy lockup periods for WLFI’s governance token and accused WLFI’s recent governance proposal of lacking transparency, saying more than 76% of the voting tokens came from 10 wallets.

Related: World Liberty burns 47M tokens in bid to pump price as slide continues

At the time, the WLFI project team said on X that the claims were “baseless allegations” and added, “We have the contracts. We have the evidence. We have the truth. See you in court pal.”

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Cointelegraph has contacted the Tron and World Liberty Financial teams for additional comment about the lawsuit. 

Meanwhile, Sun said on X that the lawsuit doesn’t change his views on President Donald Trump or his administration. 

“Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values,” Sun said.

Magazine: Will the CLARITY Act be good — or bad — for DeFi 

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