A fresh battle on Capitol Hill is throwing the fate of a bill that would define the future of digital money in the United States into question.
A group of lawmakers is taking a fresh stab at breaking the Visa-Mastercard duopoly. Their amendment would force the largest banks to offer at least one alternative credit card network other than Visa and Mastercard, such as Discover.
The idea is to boost competition and reduce retailers’ fees for every credit card swipe. Nilson Report data showed that US merchants paid over $187 billion in such fees in 2023 alone.
Senator Marshall said in an interview with Bloomberg that the amendment was a double victory for the president, explaining that it addressed inflation and gave small businesses an advantage over Wall Street greed.
The plan has strong support from retailers. They say US card fees are way too high relative to the rest of the world. They hope that the amendment and the base stablecoin bill offer a potential path for them to reduce their reliance on traditional credit cards altogether.
Lawmakers push back on Trump’s stablecoin plan
The credit card provision has thrown a wrench into that bipartisan stablecoin bill — legislation quietly gaining momentum with backing from crypto companies and President Donald Trump.
The GENIUS Act (Guiding Innovation in the Nation through Uniform Standards) would establish federal guidelines for stablecoins and digital tokens backed one-to-one with real dollars. The legislation would allow banks and licensed nonbanks to issue stablecoins under federal oversight.
Crypto companies such as Coinbase and Circle consider it necessary to offer legal clarity. President Trump has been more publicly friendly with crypto recently, and some in the industry see the stablecoin bill as a possible win for his policy portfolio.
But the card-fee amendment is provoking opposition. Now, some senators are bailing on it altogether.
Senator Thom Tillis (R-NC), whose state is home to major banks like Bank of America, has said he will work to kill the stablecoin bill if the credit card provision is included. And Senator Kevin Cramer (R-ND) added earlier that the measure was a poison pill.
Senator Cynthia Lummis (R-WY), co-author of the stablecoin bill, also called the amendment “a heavy lift” and said it could derail months of delicate bipartisan negotiations.
Even Senator Bill Hagerty of Tennessee, one of the bill’s most fervent Republican supporters, said that the measure was not a good fit.
Tech lobby, banks, and airlines push back
Behind the scenes, the lobbyists are working overtime. Payment companies, big banks, and airlines have called senators to oppose the amendment.
The airline industry is warning that reducing credit card fees could hurt rewards programs, like frequent flyer miles — programs they argue encourage customer loyalty. The Aerospace Industries Association recently added its voice to the opposition to the amendment, warning it could threaten billions in rewards-related travel.
Banks contend that if merchant fees are greatly reduced, they will need to take away the perks they currently offer their customers using credit cards. That could tighten access to credit, particularly for lower-income Americans.
Now, crypto groups such as the Blockchain Association, the Crypto Council for Innovation, the Digital Chamber, and the DeFi Education Fund have said they’re ready to help lawmakers maintain “positive momentum” to get the bill before the House.
“As the bill continues through the amendment process, we respectfully urge lawmakers to remain committed to its central goal: providing a targeted and comprehensive approach to stablecoin oversight,” the groups said in a joint statement on June 2.
Meanwhile, other contentious amendments are in the mix. Senator Rand Paul is a fan of auditing the Fed. Senator Josh Hawley is trying to ban Big Tech from rolling out its crypto tokens. Some other Democrats would like to stop Donald Trump from investing in crypto while in office or prohibit tether transfers via decentralized exchanges.
By contrast, crypto proponents are pressing lawmakers to let stablecoin issuers provide interest-bearing accounts, which they argue would be a boon for making the US more competitive worldwide. But there is no momentum behind that push — yet.