# 119-hr-8395: PACE Act of 2026 119-hr-8395, PACE Act of 2026, is a 119th Congress bill sponsored by Rep. Kim, Young [R-CA-40] (R-CA); status introduced; PRIA reads it as touching household money (as of 2026-09-21). - Canonical: https://policyrisk.com/legislation/119-hr-8395 - As of: 2026-09-21 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-hr-8395 - Congress: 119 - Title: PACE Act of 2026 - Status: introduced - Introduced: 2026-04-21 - Sponsor: Rep. Kim, Young [R-CA-40] (R-CA) - Cosponsors: 2 - Policy area: Finance and Financial Sector - Touches household money: yes - Last recorded action: 2026-09-21 ## Summary **This bill would create a federal registration and supervisory regime for payment-service providers.** It would set eligibility tests, minimum reserve and liquidity standards, customer-protection rules, and a tailored insolvency framework while clarifying that customer balances are not securities under key federal securities laws. - Consumers and households: Would get stronger protections and clearer treatment of their balances. Providers must segregate custody assets, ban rehypothecation of reserves, and give customers priority claims in insolvency. - Payment-service providers: Would need to register with the Comptroller to operate under the regime. Qualifying paths include holding at least 40 state money transmitter licenses, a state depository institution charter, or a state credit union charter, and providers would face new risk-management, recordkeeping, and reporting requirements. - Regulators and system stability: Would gain examination, enforcement, and special conservatorship or receivership powers modeled on bank supervision. The bill would also provide access to Federal Reserve payments-reserve accounts with approval timelines and procedures for unusual or exigent circumstances. ## Cosponsors (2) - Rep. Liccardo, Sam T. [D-CA-16] (D-CA), 2026-04-21T00:00:00.000Z - Rep. Sessions, Pete [R-TX-17] (R-TX), 2026-06-24T00:00:00.000Z ## Provisions PRIA read - One-to-one reserves and custody rules: benefit, high. If enacted, registered covered providers would have to keep identifiable reserves equal to outstanding payment obligations on a one-to-one basis. Permitted reserve assets would include U.S. coins and currency, Federal Reserve balances, certain deposits, short-term Treasury securities (93 days or le… - Customer priority in nonbank insolvency: benefit, medium. If enacted, a nonbank registered covered provider would not be treated as a debtor in Chapters 7 or 11 and could be placed into a State insolvency proceeding run by a covered State regulator. The Comptroller could act as conservator or receiver and must start a proceeding if a State does not act pr… - Balances not treated as securities: mixed, high. If enacted, the bill would amend several federal securities laws to say that a balance with a registered covered provider is not a "security." The change would apply to the Securities Act of 1933, the Exchange Act of 1934, the Investment Company Act, the Investment Advisers Act, and the Securities… - Comptroller oversight and fair access: mixed, high. If enacted, the Comptroller would be able to examine and supervise registered covered providers. Examinations could cover operations, finances, safety and soundness risks, risk systems, and compliance with Federal consumer financial law. Providers would have to notify the Comptroller within 30 days… - Federal registration for payment firms: mixed, high. If enacted, the bill would create a federal registration for "registered covered providers." To qualify, a provider would need at least one of: 40 active state money-transmitter licenses, a state depository charter, or a state credit union charter. For applications filed in the first 180 days after… - Federal Reserve account access: mixed, high. If enacted, a registered covered provider could request a payments reserve account at a Federal Reserve Bank in the same way an insured bank can. The Board would have 120 days to approve or deny a request, with one 60-day extension; failure to act would be deemed approval. The Board would be able t… ## Related bills - 119-hr-6644: 21st Century ROAD to Housing Act - 119-hr-3151: SHIPS for America Act of 2025 - 119-hr-2725: Affordable Housing Credit Improvement Act of 2025 - 119-hr-4393: DIGNIDAD (Dignity) Act of 2025 - 119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage Act - 119-hr-6955: Main Street Capital Access Act ## Sources - [119-hr-8395 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/8395) ## Related - [119-hr-6644: 21st Century ROAD to Housing Act](https://policyrisk.com/legislation/119-hr-6644) - [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151) - [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725) - [119-hr-4393: DIGNIDAD (Dignity) Act of 2025](https://policyrisk.com/legislation/119-hr-4393) - [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842) - [119-hr-6955: Main Street Capital Access Act](https://policyrisk.com/legislation/119-hr-6955) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-hr-8395 (as of 2026-09-21).