Congress Throws Sand in the Gears of Trump’s Stablecoin Credit Card Gambit

Lawmakers are mounting resistance against former President Trump’s push to merge stablecoins with credit card payments—a move critics call a backdoor for deregulation. The proposed crackdown targets what some see as an end-run around traditional banking oversight.

Meanwhile, Wall Street shrugs—another day, another creative way to pretend volatility doesn’t exist.

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.

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