Senator Marshall's Controversial Credit Card Bill Sparks Legal Fears and White House Pushback
A controversial update to the Credit Card Competition Act (CCCA) has emerged as an amendment to a cryptocurrency bill. Senator Roger Marshall (R-KS) proposed the changes, which include new enforcement powers for state attorneys general. Critics warn the provisions could trigger legal battles and disrupt financial services for consumers and businesses.
The White House raised concerns about the amendment's impact on the broader bill, prompting Marshall to withdraw it—for now. However, the senator has not ruled out reintroducing the measure in future legislation.
The latest version of the CCCA introduces two key changes. First, it requires retailers to provide a second credit card network option. Second, it grants state attorneys general the authority to pursue civil actions against alleged violations.
Observers have drawn parallels to past cases, such as the legal campaigns against the NRA. They argue the CCCA's enforcement powers could enable similar tactics, including punitive actions against banks and credit unions. This might lead to what some call 'lawfare'—using legal systems to target specific industries or individuals.
The White House intervened after Marshall filed the amendment, warning it could derail the cryptocurrency bill's passage. In response, the senator agreed to pull the proposal from the vote. Yet, he has not abandoned the CCCA entirely. Sources suggest he may seek another must-pass bill to revive the measure.
Analysts describe the CCCA as 'dead on arrival' due to its potential consequences. If enacted, the law could slash or eliminate credit card rewards for consumers. It might also force financial institutions to sever ties with certain customers or sectors, a practice known as 'debanking'.
The CCCA's future remains uncertain after its removal from the cryptocurrency bill. Marshall's willingness to revisit the proposal means the debate is far from over. Should the act pass in its current form, consumers could face fewer rewards, while banks and credit unions may confront increased legal risks and operational disruptions.
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