K-STREET, 10,000 FEET: American consumers would be crushed under the Durbin bill targeting credit cards
THE LOWDOWN:
The controversial Credit Card Competition Act (CCCA), being pushed by Sen. Dick Durbin (D., Ill.) and fellow Sen. Roger Marshall (R., Kansas), is being sold as a way to combat swipe fees, which the senators argue “are inflation multipliers.”
Still, even as CCCA proponents argue swipe fees multiply inflation, the truth of the matter is much different. Inflation over the past five years under President Joe Biden rose by 21 percent, according to the Bureau of Labor Statistics (BLS).
“CCCA would be a disaster,” a person close to President Trump told the Reporter. “Not only does it give Trump-hater Dick Durbin a win, it would be a win for woke retailers and crush American consumers.”
A congressional aide previously explained to the Reporter that the CCCA “is a poison pill trick to kill the GENIUS Act.”
Americans carry trillions of dollars in credit card debt. While that may seem like a problem, it isn’t necessarily one, as credit plays an integral role in our economy.
What is a problem is legislation that would cripple American consumers under the guise of making the market fairer.
Unfortunately, we are seeing such an effort come out of the Senate in the form of Sen. Dick Durbin’s (D., Ill.) controversial Credit Card Competition Act (CCCA) — legislation taking aim at credit card swipe fees that is seeing resounding pushback on Capitol Hill.
The bill, being pushed by Durbin and fellow Sen. Roger Marshall (R., Kansas), is being sold as a way to combat swipe fees. Still, even as CCCA proponents argue swipe fees drive inflation, swipe fees have remained largely stagnant. Inflation over the past five years under President Joe Biden rose by 21 percent, according to the Bureau of Labor Statistics (BLS).
The CCCA is seeing a push in the upper chamber as its proponents try to tie it to the GENIUS Act, a bill looking to impose regulations on stablecoins — cryptocurrencies tied to a government’s own currency. They argue that the CCCA’s inclusion in the GENIUS Act would somehow increase the vote count to pass the measure.
However, as is the adage of Washington, don’t overpromise and under-deliver. The CCCA’s inclusion as an amendment to the GENIUS Act is an overpromise that those in Trump World are warning carries disastrous consequences.
“CCCA would be a disaster,” a person close to President Trump told the Reporter. “Not only does it give Trump-hater Dick Durbin a win, it would be a win for woke retailers and crush American consumers.”
Trump World isn’t the only political sphere pushing back on Durbin’s bill. The bill was warned of being a poison pill to the GENIUS Act by a congressional aide.
A congressional aide previously explained to the Reporter that the CCCA “is a poison pill trick to kill the GENIUS Act.”
“It won’t pass the House and it won’t become law,” the aide said. “Congress worked extremely hard to get GENIUS this far and it will be a huge win for President Trump, so Republicans are focused on stopping Durbin from derailing this to continue his credit card crusade.”
Marshall’s chief of staff Brent Robertson took a different angle, telling the Reporter that the “suggestion that credit card fees have not increased is detached from reality — swipe fees have increased more than 70 percent since 2020.”
“Even VISA’s CEO on an investor call said they’re a ‘beneficiary of inflation,’” Robertson said. “Inflation through the Biden years was 20 percent, and the only beneficiary of that has been Wall Street Banks and the VISA-Mastercard duopoly.”
The Reporter reached out to the Durbin’s office for comment.
