Sen. Durbin Revisits Credit Card Competition Law

Fifteen years back, Sen. Dick Durbin (D-Ill.) slipped some amendments into a law that surprisingly benefited major retailers like Walmart and Target to the tune of $90 billion.

Now, he seems poised to try something similar again, this time seeking Republican support.

Meanwhile, President Trump has made his goals clear, aiming for America to take a leading role in financial technology.

Sen. Roger Marshall (R-Kan.), a former chairman of the House Financial Services Subcommittee on Capital Markets and Government-sponsored Companies and a staunch Trump supporter, is reportedly collaborating with Durbin on a significant piece of legislation dubbed the Genius Act.

This new law, championed by Trump, aims to establish the first federal framework for stablecoins—a kind of digital dollar backed by a reliable financial institution and underpinning U.S. currency. It could mark a pivotal advancement for America’s digital payments landscape in the 21st century, and help us keep pace with countries like China in global finance.

Trump and Vice President JD Vance are advocating for this bill fervently. Vance expressed optimism at the Bitcoin 2025 conference in Nashville, stating they hope a clean genius act can pass swiftly.

However, if Marshall and Durbin manage to attach the so-called credit card competition law to the main bill, that positive momentum could be lost. Critics argue this isn’t true reform, but rather a revision of Durbin’s earlier efforts, which have faced significant backlash.

Back in 2010, despite significant opposition, Durbin pushed through an amendment that shifted payment costs away from major retailers. He assured consumers that they would reap the benefits of the supposed savings.

Yet, that promise fell flat.

A subsequent study found that only 1% of merchants actually passed on their savings to consumers. In fact, 22% of them raised prices instead. Meanwhile, credit card companies had to shoulder new costs, leading to the elimination of free checking accounts and cuts to debit card compensation programs. As a result, the number of cardholders receiving rewards has dipped by 30%.

In short, Main Street ended up losing out. Even some progressive research institutes have recognized the failure of those amendments, urging Congress to reassess their approach.

The Credit Card Competition Act, while aiming to fix some issues, still has fundamental flaws. It would require all credit cards to operate on at least two payment networks, effectively allowing large retailers to route transactions through the cheapest options—ultimately pocketing the difference without benefiting consumers.

In its current state, consumers can choose the cards they prefer and the networks to use, which is a hallmark of a free market. The CCCA threatens to dismantle this structure, jeopardizing the rewards—cashback, travel miles, etc.—that many Americans value.

Retail giants like Amazon, Walmart, and Target stand to gain, while rural communities, small banks, and local businesses could bear the brunt of these changes.

If this amendment is attached to the Genius Act, the bipartisan enthusiasm behind the bill could quickly fade. Sen. Thom Tillis (R-N.C.) has already indicated he’d pull his support if Durbin’s amendment is included.

Congress must resist allowing behind-the-scenes arrangements or cronyism to derail this vital legislation. The Genius Act represents a straightforward opportunity for U.S. leadership in consumer protection, innovation, and digital finance.

Trump’s vision for the United States to excel in financial technology includes the pursuit of clear, sensible regulations that foster innovation, protect consumers, and maintain the dollar’s global position.

The Genius Act has the potential to meet all these objectives—if lawmakers can keep it straightforward.

Republicans need to consider their stance; they can’t profess to support Trump’s economic agenda while simultaneously catering to large corporations and their preferred Democratic senators. It’s a decision between supporting Main Street or aligning with corporate interests.

The nation doesn’t need another Durbin amendment. What it truly requires is effective leadership.