Potential Adjustments Made to Credit Card Regulations Could Incorporate Stablecoin Legislation
The Credit Card Competition Act Remains Stalled in the Senate
The Credit Card Competition Act (CCCA) was not included in the final version of the GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act signed into law in July 2025. Originally proposed as an amendment, the CCCA was left out during Senate negotiations. As of August 2025, the CCCA has not passed the Senate and continues to face opposition.
The CCCA aims to open up the current market dominated by Visa and Mastercard, who control 80% of all payments. If enacted, it would require large banks with at least $100 billion in assets to enable credit cards to be processed over at least one unaffiliated network, such as Star, NYCE, or Shazam. This mandate is expected to foster competition, potentially saving merchants and their customers more than $16 billion a year in swipe fees.
Retail organizations like the Merchant Payments Coalition and the National Retail Federation have voiced support for the CCCA, citing the high operating expenses and second-highest costs for many businesses caused by credit card swipe fees. However, opposition to the CCCA comes from credit unions, banks, and the credit card industry, who argue that the bill could disrupt existing payment processing systems and potentially reduce credit card reward points.
If the CCCA passes, merchants could benefit from lower payment processing fees, potentially reducing their operating costs. Consumers may experience mixed effects, with the potential for lower prices due to lower fees for merchants, but a possible reduction in credit card rewards programs as issuers make up lost fee revenue. The credit card industry may face revenue pressure, with potential reductions in interchange fees and a need to adjust business models or cut rewards to compensate.
The fate of the CCCA remains uncertain, with continued opposition from financial industry stakeholders. The potential impacts of the CCCA, if passed, are varied, affecting merchants, consumers, and the credit card industry differently. As the CCCA undergoes amendments ahead of the expected vote, the outcome remains to be seen.
The stalled status of the Credit Card Competition Act (CCCA) in the Senate is not isolated, as it is also a subject of discussion in the realm of general-news, politics, and business. If passed, the CCCA could have significant implications for the finance industry, potentially disrupting current payment processing systems and redistributing revenue among merchants, consumers, and the credit card industry.
