Trump Proposes 10% Credit Card Rate Cap Amid Wall Street Pushback

Former President Donald TRUMP has floated a one-year 10% cap on credit card interest rates to address affordability concerns, a move that would slash the current average rate of 19.6%. The proposal, part of a broader economic package, has drawn sharp criticism from financial institutions warning of tightened credit access and economic slowdowns.

Citigroup CFO Mark Mason cautioned the cap WOULD disproportionately restrict credit for underserved borrowers while destabilizing the $1 trillion card industry. Wells Fargo's Mike Santomassimo echoed concerns, predicting broad reductions in credit availability and GDP impacts. Trump defended the plan on Truth Social, framing high rates as predatory and vowing to curb institutional home purchases alongside mortgage market interventions.

The financial sector views the measures as hastily conceived, with potential Ripple effects across consumer lending markets. While no direct cryptocurrency implications surface in the proposal, such aggressive credit market interventions could drive alternative financing demand—a space where decentralized finance protocols have gained traction during traditional banking constraints.