Senate Action Needed: Oppose Interchange and Credit Card Cap Amendments to the GENIUS Act 

Congress returns to session this week, and the Senate will begin considering the GENIUS Act—legislation that would establish a new federal framework for regulating the issuance of stablecoins. Notably, this marks the first time in eight years that a bill from the Senate Banking Committee is being debated on the Senate floor, making it a likely vehicle for a variety of financial services-related amendments.

Among the anticipated amendments is Sen. Roger Marshall’s (R-KS) so-called “big box bailout,” also known as the Credit Card Competition Act. This proposal would effectively impose government price controls on interchange fees, a move that could significantly harm credit unions and their members.

Although the amendment process has not yet been finalized, it is critical for credit unions to contact their Senators now. Let them know that government intervention in interchange fees would have serious negative consequences for your institution and the people you serve.

In addition, Senator Hawley has offered an amendment that would cap credit card interest rates at 10%. This reduction in credit would have negative ripple effects on not only consumers who rely on credit to help make ends meet, but the broader economy as a whole. Many consumers who currently rely on credit cards would be forced to turn elsewhere for short-term financing needs, including pawn shops, auto title lenders, or worse—loan sharks, unregulated online lenders, and the black market.

The Senate will also take up the budget reconciliation package. If any changes are made to the bill, those differences will need to be resolved with the House version. Both chambers must then vote on the final version before it can be sent to the President for signature.

CrossState urges credit unions to reach out to Senate offices in New Jersey and Pennsylvania to advocate for the protection of the credit union federal income tax exemption as the Senate considers its version of the federal budget.