PACE Act of 2026

This bill establishes a federal registration system for payment service providers, allowing companies that meet specific state licensing and charter requirements to register with the Comptroller of the Currency and operate across state lines. Once registered, these providers must maintain customer funds in segregated reserve accounts backed by highly liquid assets like U.S. currency, Treasury securities, and insured deposits, and they are prohibited from reusing customer funds for their own purposes. The legislation also requires registered providers to follow fair access rules that prevent discrimination based on political views or beliefs, undergo regular federal examinations, and submit financial reports to regulators. Additionally, the bill grants the Comptroller authority to act as a conservator or receiver for insolvent nonbank payment providers and ensures that customer balances held with these providers are not classified as securities under federal law.