The Senate’s ongoing debate over cryptocurrency legislation is facing its most significant challenge yet, as the potential for a contentious amendment on credit card swipe fees has placed the stablecoin bill in jeopardy. Senate Majority Leader John Thune, who has vowed to return the Senate to ‘regular order,’ is now in the position of overseeing a test of his leadership and the legislative process itself. The bill, which seeks to create a regulatory framework for stablecoins, has finally gained enough momentum to clear the Senate, but the inclusion of a controversial credit card fee provision is pushing it toward collapse.
Pro-crypto lawmakers, who had hoped to secure a major legislative victory in the Senate, are now scrambling to prevent the credit card amendment from sabotaging their ambitions. The amendment, championed by Sen. Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.), aims to address disparities in credit card swipe fees, a long-standing industry concern. However, the measure has become a hotbed of political and financial contention, with major financial institutions and retailers locked in an ongoing battle over the cost of transaction processing. The amendment’s inclusion in the stablecoin legislation has created a rift, with both sides wary of the potential fallout.
Critics of the amendment warn that its adoption could have far-reaching consequences, potentially undermining the value of the stablecoin components of the legislation. Sen. Thom Tillis (R-N.C.), who supports the stablecoin bill but opposes the credit card provision, has already voiced concerns that the amendment could ‘kill the bill’ by drawing away critical Republican support. As procedural votes are scheduled for this week, the outcome of the amendment debate will determine whether the stablecoin bill can survive and be passed, with the Senate now poised to face one of its most decisive moments in recent history.