Interchange bill not germane to digital assets legislation
Sen. Roger Marshall, R-Kan., is offering an altered version of the Credit Card Competition Act to the Digital Commodity Intermediaries Act, which the Senate Agriculture Committee is scheduled to markup starting Tuesday.
Marshall submitted the bill Friday, and America’s Credit Unions President/CEO Scott Simpson swiftly responded in an op-ed Saturday. He urged the Senate to wholly reject attempts to attach credit card interchange legislation to the digital assets bill.
“This amendment, as currently proposed, is not germane. Attempting to force it into the Agriculture Committee’s markup is more than a procedural misstep, but a clear signal of disrespect for the committee, its members, and the legislative process itself,” Simpson wrote. “While Sen. Marshall’s proposal is being pitched as a significant rewrite of his original Credit Card Competition Act, which was endorsed by the President earlier this month, the newly proposed amendment is little more than a wolf in sheep’s clothing… a government price control by another name.”
The offered amendment would also expand the role of state attorneys general, which Simpson added would fragment enforcement, undermine national standards, and destabilize a system consumers and small businesses rely on.
“The broader harm caused by interchange mandates is undeniable and well documented. The Congressional Research Service, independent academics, and respected economists have all reached the same conclusion: price controls on interchange fees fail consumers and fail local financial institutions,” Simpson wrote, urging Congress to “reject this legislation altogether and instead work with credit unions to address affordability challenges in a way that actually helps consumers.”
The Senate is not in session today due to the winter storm, America’s Credit Unions will provide updates on developments and needed action steps to address the amendment in advance of the Senate’s return to Capitol Hill.