The dispute over credit card fees in the US is hindering the advancement of stablecoin legislation.

Retailers in the United States and their allies in the Senate are attempting to force credit card processing businesses to compete with Visa (V.US) and Mastercard (MA.US), making efforts to quickly pass the stablecoin bill supported by the cryptocurrency industry and Trump more complicated. Republican Roger Marshall of Kansas introduced the amendment, with support from Democrat Dick Durbin of Illinois. Durbin had previously led a successful bipartisan effort to lower debit card fees. The credit card competition measure also received support from Vice President Jed Vance while serving as a senator, at a time when he was also one of the other populist-leaning Republicans. The proposal requires large banks to offer multiple payment networks for credit card transactions, including payment networks other than Visa and Mastercard. The aim is to lower the fees paid by merchants for such transactions by introducing more competition. Marshall said in an interview on Tuesday, "I think this is a win-win situation for the president. Capitalism without competition leads to unchecked greed, which is exactly what we are facing now." He argued that his amendment would lower inflation rates and benefit ordinary merchants rather than Wall Street bankers. Retailers are also hoping that the basic stablecoin bill will provide them with a way to bypass credit cards and their fees (which are much lower in many other countries). According to Nielsen data, American merchants paid over 187 billion dollars in card transaction fees last year. Banks, airlines, and other related interest groups are vehemently opposed to the credit card competition measure, as it could reduce their profits. They warn that forcing competition and lowering fees could have adverse effects on consumers if credit card rewards were reduced due to reduced merchant income. They have their own allies as well. Republican Senator Thom Tillis of North Carolina said that if credit card terms were included, he would change his support for the stablecoin bill to opposition. The state is home to large banking operations. Additionally, Republican Senator Kevin Cramer of North Dakota expressed support for the credit card measure, but said he might vote against it if the amendment could be a "poison pill" and jeopardize the stablecoin bill. In recent weeks, executives from payment companies have been in talks with senators, trying to prevent the passage of credit card-related provisions. Insiders familiar with the situation revealed that these phone conversations have been reported. Republican Senator Cynthia Lummis of Wyoming predicted in an interview on Tuesday that the bill would pass next week, but she noted that the credit card amendment "presents challenges, as it involves altering a carefully negotiated bill and adding a controversial new element." Tennessee Senator Bill Hagerty, the main Republican proponent of the stablecoin bill, also stated that he would oppose the addition of this provision. "It's just not appropriate," he said. Even if this amendment were to pass, it is unclear if it will pass in the House of Representatives, as Financial Services Committee chair Frank Hill has been opposed to the amendment. Other amendments proposed include: a proposal by Senator Rand Paul to audit the Federal Reserve; an amendment by Senator Josh Hawley to prohibit large social media companies from issuing their own tokens; and several Democratic proposals aimed at preventing Trump from profiting from various cryptocurrency businesses during his term. Some Democrats also hope to ban Tether Holdings SA from trading on decentralized exchanges, further addressing concerns from bankers that stablecoins could drain their deposits and restrict credit. Cryptocurrency companies like Coinbase (COIN.US) have been lobbying to allow stablecoin accounts to earn interest, but these efforts have yet to persuade lawmakers in the House or Senate to agree to this proposal.