Congress Eyes Credit Card Industry—Again. But Populist Proposals Could Hurt Louisiana Consumers and Small Banks

Last month, the U.S. Senate passed a version of the GENIUS Act—legislation aimed at regulating stablecoins. But the real action came behind the scenes, as senators stripped out two major amendments targeting an unrelated but politically convenient villain: credit card companies.

Senators Bernie Sanders (I-VT) and Josh Hawley (R-MO) proposed an interest rate cap of just 10% on credit cards, while Sens. Dick Durbin (D-IL) and Roger Marshall (R-KS) tried once again to attach their Credit Card Competition Act (CCCA) to the bill. Both measures were ultimately rejected—but not without a fight.

Durbin’s amendment, in particular, has become a recurring effort. The CCCA would require large banks to offer credit cards on multiple payment networks, not just Visa or Mastercard, under the theory that more network competition would lower swipe fees for merchants. But in reality, the bill does little for consumers and could devastate small community banks and credit unions—particularly in rural states like Louisiana.

Durbin used a similar strategy in 2010, when he tacked a debit card regulation onto Dodd-Frank. That rule was supposed to lower costs for consumers. It didn’t. Merchants pocketed the savings, while banks raised fees and cut perks like free checking.

Now, with the CCCA, we’re likely to see history repeat itself. If passed, the bill would benefit big-box retailers with high card volume—think Walmart and Amazon—while everyday consumers lose out on card rewards, fraud protection, and credit access.

The interest rate cap proposal is equally troubling. While it may sound appealing, a government-mandated 10% cap would make it nearly impossible for credit card companies to serve consumers with lower credit scores. The result? Fewer credit options, more reliance on predatory lenders, and higher borrowing costs for working families.

Supporters say these reforms are about protecting the little guy. But by limiting choice and forcing financial institutions to take fewer risks, these policies would actually hurt the very consumers they claim to help—especially in rural and lower-income regions.

Some in Washington argue that the credit card market lacks competition. But industry trends suggest otherwise. In May, Capital One announced plans to acquire Discover Financial, which would give more banks access to Discover’s network and create a real alternative to Visa and Mastercard. That kind of market-driven expansion should be encouraged—not stifled by regulation.

Here in Louisiana, where small banks, local merchants, and middle-class families all rely on a functioning credit card ecosystem, Congress should think twice before embracing heavy-handed regulations. The GENIUS Act moved forward without these harmful amendments—but it likely won’t be the last time we see them.

If lawmakers are serious about fostering competition, innovation, and access, they should resist the urge to score political points at the expense of working Americans. Real reform means empowering consumers—not limiting their choices.