Wells Fargo Shares Slide as Proposed 10% Credit-Card Cap Sparks Market Uncertainty
Wells Fargo (WFC) led banking sector declines, closing down 1.9% at $86.66 as Washington's proposed 10% APR cap on credit cards rattled financial markets. The policy uncertainty coincides with crypto markets showing resilience, with Bitcoin (BTC) and ethereum (ETH) maintaining key support levels despite traditional finance turbulence.
Banking analysts warn the cap could force lenders to restrict credit access—a scenario that historically benefits decentralized finance alternatives. Crypto payment tokens like XRP and stablecoin issuers may gain traction if traditional credit channels tighten.
Meanwhile, Wells Fargo's wealth management relocation suggests institutional preparation for tighter margins. This mirrors crypto-native firms doubling down on infrastructure, with exchanges like Coinbase and Binance seeing increased institutional Flow despite regulatory headwinds.
