Trump’s Proposed 10% Credit Card Rate Cap Could Eliminate 80% of Accounts, Sparking Financial Sector Concerns

President Donald Trump's bold proposal to cap credit card interest rates at 10%—less than half the current national average—could trigger a seismic shift in consumer finance. Industry analysts warn such a MOVE might force lenders to close four out of five credit card accounts, disproportionately affecting subprime borrowers.

The policy, slated for potential implementation on January 20, aims to protect consumers from what TRUMP called "20 to 30%" predatory rates. Yet banking executives counter that the math simply doesn't work—without high-interest revenue from riskier borrowers, they claim rewards programs would vanish and credit access would constrict.

Market observers note parallels to cryptocurrency's decentralized finance models, where algorithmic rate-setting bypasses traditional credit scoring. While no direct crypto mentions appear in the proposal, the debate underscores growing public frustration with legacy financial intermediaries.