WASHINGTON--As the Senate begins consideration of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (S. 1582), America’s Credit Unions said it is fighting two “poison pill” amendments.
The Defense Credit Union Council is also opposing the bills.
Senators Roger Marshall (R-KS) and Josh Hawley (R-MO) have offered amendments that credit unions oppose.
As originally written, the GENIUS Act would establish regulations for stablecoins.
Marshall's amendment contains the text of his previously introduced Big Box Bailout bill (Credit Card Competition Act--CCCA).
"Credit unions have strongly opposed Marshall’s interchange bill, as it would harm consumer choice and benefit big box retailers by mandating the use of third-party payment networks without the same level of cybersecurity protection and infrastructure currently in place," ACU noted.
America’s Credit Unions and DCUC signed onto a joint letter Wednesday, which reiterated the numerous negative consequences to the bill, and the research supporting it. ACU sent its own letter to Congress opposing Marshall's amendment Tuesday. DCUC sent its letter opposing the bill Monday night.
“The Durbin-Marshall bill, a poison pill amendment that has not been properly considered through the regular legislative process, would harm consumers, small businesses, and financial institutions alike by reducing choice, increasing costs and fraud risks, and create economic challenges for small financial institutions,” the groups wrote.
The letter highlights a recent study showing that the bill would reduce access to credit, particularly in smaller communities and low-income households.
America’s Credit Unions also joined financial services trade organizations in a letter opposing an amendment from Hawley that would cap credit card interest rates at 10%.
The groups note that any government price controls, including annual percentage rate caps, hurt consumers.
“This amendment would eliminate access to credit cards for millions of consumers and drive them to sources of credit which are far more costly and less regulated,” the letter reads. “Many consumers who currently rely on credit cards would be forced to turn elsewhere for short-term financing needs, including pawn shops, auto title lenders, or worse–such as loan sharks, unregulated online lenders, and the black market.”
The Senate advanced the bill through several procedural votes Wednesday, and the amendments process is ongoing.
DCUC's Response
The Defense Credit Union Council called the two amendments "dangerous," sending a letter to lawmakers.
Addressing the CCCA, DCUC Chief Advocacy Officer Jason Stverak said, "We’ve seen this movie before. The Durbin Amendment on debit cards promised savings for consumers and instead handed windfalls to retailers with no requirement to pass along a single penny in savings. The Marshall-Durbin bill would only make things worse by extending the same failed logic to credit cards."
Regarding Hawley's bill that would impose a 10% cap on credit card interest rates, Stverak said, "While well-intentioned, this proposal would drive millions of consumers—particularly those with lower credit scores or limited credit histories—out of the regulated financial system and into high-risk alternatives such as payday lenders, auto-title lenders, or black-market lending."