Victory for Consumers and Free Markets: CCCA Left Off the GENIUS Act
- Staff @ LPR
- Jun 24
- 3 min read
In a major win for consumers, small businesses, and the integrity of the U.S. credit card system, the Credit Card Competition Act (CCCA) was left out of the GENIUS Act, which recently passed the Senate. The GENIUS Act, which focuses on creating a regulatory framework for digital assets and stablecoins, moved forward with bipartisan support—but without the controversial CCCA amendment that would have imposed sweeping changes on how credit card transactions are routed. This outcome marks a significant victory for millions of Americans who rely on their credit card rewards and value the security, convenience, and consistency of our current payment networks.
Had it been included, the CCCA would have mandated that large credit card issuers—those with over $100 billion in assets—enable at least two unaffiliated payment networks on every card. The policy was framed as a pro-competition reform to lower merchant fees, but in reality, it would have disrupted longstanding agreements and technical systems that ensure secure, reliable, and rewarding transactions for consumers. Visa and Mastercard, which currently process the majority of U.S. credit card transactions, would have been forced to share space with lesser-known networks that may lack the same level of fraud prevention or international reach.
What does that mean for consumers? Less value, fewer benefits, and more confusion. Reduced interchange revenue would likely have led card issuers to cut back on the perks and rewards that cardholders have come to expect—travel miles, hotel points, and cash back programs. These benefits are not paid for by taxpayers or the government—they’re funded by the current fee structure that the CCCA sought to dismantle. Airlines, in particular, raised concerns that their co-branded credit card partnerships could be undermined, jeopardizing programs that millions of travelers use to earn free flights and upgrades.
Consumer groups, industry experts, and financial analysts have all warned that these types of routing mandates don’t just hurt large banks or networks—they hurt ordinary Americans who use their credit cards strategically to earn rewards, manage their finances, and build credit. Even worse, by routing payments through multiple networks, fraud detection capabilities could become fragmented, making it harder to prevent unauthorized charges and identity theft.
Fortunately, cooler heads prevailed. The Senate ultimately chose not to include the CCCA in the final version of the GENIUS Act, avoiding a backdoor swipe-fee overhaul that would have had far-reaching and negative effects on the payments ecosystem. That doesn’t mean the issue is resolved permanently—some lawmakers may attempt to revive the CCCA in future legislation, either as a stand-alone bill or tucked into broader financial policy packages. But for now, the decision to leave it out of the GENIUS Act sends a strong message: Congress is not willing to undermine consumer rewards or payment security in the name of cutting costs for big-box retailers.
This is not a partisan issue. Americans of all political backgrounds benefit from credit card programs that reward responsible spending and offer robust protections. The real winners here are consumers who want to keep earning their points, miles, and cash back without government interference dictating how their payments are processed. In an era where inflation continues to put pressure on household budgets, preserving these rewards is not a luxury—it’s a necessity.
As the GENIUS Act heads to the House for consideration, stakeholders should remain vigilant. The swipe-fee debate isn’t over, but this round went to those who stood up for consumers, innovation, and a fair, competitive market.