Trump's Impact on Payments: Regulation and Fintech Shifts

The article by Lynne Marek and Patrick Cooley discusses potential changes in U.S. payments policies under a possible second Trump administration, which could reshape regulatory and antitrust approaches to digital payments, stablecoins, and fintech. Trump’s administration may shift the Consumer Financial Protection Bureau’s (CFPB) current stance on digital payments, reducing the regulatory burdens enforced under Biden’s Director Rohit Chopra. Changes may include softer guidelines on earned wage access (EWA) and buy now, pay later (BNPL) services, as well as reduced penalties on major financial firms.

Trump's proposed cap on credit card interest rates and Vice President-Elect J.D. Vance’s support of the Credit Card Competition Act might support some consumer protections while challenging major financial players like Visa and Mastercard. Additionally, the administration may encourage private stablecoin development over a central bank digital currency, with potential benefits to cryptocurrencies.

Finally, the article notes that Trump’s administration could ease open banking regulations, which the current CFPB has promoted to enhance consumer control over financial data. Such adjustments, aimed at reducing perceived regulatory excesses, could significantly impact the digital payments and fintech sectors.