Concerns Over Growing Financial Regulation

Kids these days might not realize just how impressive their ability to split dinner checks among friends really is.

With today’s technology, it’s a breeze. One person pays, and others can easily send their share via apps like Cash or Zelle—whether it’s for a tattoo or a babysitter. It’s all about making life simpler.

During his presidency, Joe Biden pushed to reform the financial tech landscape. If his administration had its way, daily transactions would fall under the watchful eye of government regulators.

While in office, Biden’s Consumer Financial Protection Bureau (CFPB) attempted to expand its authority, creating new regulations for payment apps akin to those governing banks. This could lead to complications—slower transactions, rising costs, and an increase in red tape. Was this really about helping consumers? Or was it about increasing government control over financial transactions, making it harder for Americans to use their preferred payment methods?

Then there’s the IRS, which decided to drop the reporting threshold for payment app transactions from $20,000 to just $600. This change means more oversight and could bring unintended consequences—like making life more complicated for gig workers and small business owners facing audits they never anticipated.

As the saying goes, if it moves, tax it. And if it keeps moving, tax it some more.

Fortunately, former President Trump intervened, working to halt such regulations.

Thanks to the support he received, the House of Representatives recently approved Trump’s “big beautiful bill,” intended to repeal the IRS’s new rules for payment apps. The Senate is still deliberating on this legislation. On the same day, Trump also enacted a resolution to dismantle Biden’s CFPB regulations aimed at digital payments.

Under the guise of “consumer protection,” these policies seemed more focused on tightening government control rather than truly safeguarding individuals. Biden’s administration eyed the booming digital payment sector as a means to extend its influence.

Biden’s regulatory efforts weren’t limited to just payment systems. He even advocated for a government-backed digital currency, often referred to as “Fedcoin.” This initiative aimed to undermine private cryptocurrencies like Bitcoin, potentially risking financial privacy and enhancing governmental control over transactions. Trump defended cryptocurrency as a way for people to maintain their financial independence, rallying support from the crypto community during events like the Bitcoin Conference.

Moreover, Biden’s Department of Justice has been involved in anti-trust actions against major companies like Visa, which raises questions about whether this is a necessary move against monopolistic practices or just an overreach into the private sector. Visa competes with a range of payment options, including fintech apps like Venmo. The complexity of the financial landscape begs the question if the government’s approach is truly addressing significant issues or merely tightening its grip.

If Biden had his way, you’d find yourself spending forever figuring out how to split a check with friends, while Trump’s focus on innovation seeks to keep things flowing smoothly without government hassle.

That kind of leadership—that values freedom and a thriving economy—positions America for ongoing success.

Lynn Westmoreland served in the U.S. House of Representatives from 2004 to 2016, and was part of the Financial Services Commission and the Subcommittee on Financial Institutions and Consumer Credit.