New Administration, New Priorities: What’s on the Horizon for Payments Policy?

As the new administration takes shape, regulatory and legislative activity in Washington is evolving, with important implications for payments. Here’s a look at recent developments in Congress, at the Federal Reserve, and the Consumer Financial Protection Bureau (CFPB).

United States Congress

On Capitol Hill, legislators are revisiting key payments-related proposals. The Credit Card Competition Act, which seeks to introduce new competition into the credit card market, is expected to be reintroduced this session. Additionally, congressional committees are holding hearings on the future of digital currencies and stablecoins, signaling continued interest in payments innovation. Legislative action in these areas could shape the regulatory environment for merchants in the coming years.

Federal Reserve

The Federal Reserve continues to focus on payments-related policies, particularly the implementation of updates to Regulation II, which governs debit card interchange fees. The Fed has proposed reducing the interchange cap, a move that could significantly impact merchant processing costs. Discussions around the FedNow instant payment service and its broader adoption remain ongoing, as stakeholders assess how real-time payments fit into the broader U.S. payments landscape. Additionally, Vice Chair for Supervision Michael Barr is stepping down effective February 28, and a replacement has not been named by the Trump Administration at the time of this writing. The vacancy and eventual appointment to this role may have implications for financial regulation, including areas relevant to payments.

Consumer Financial Protection Bureau (CFPB)

The CFPB has been actively engaged in rulemaking in recent years, focusing on issues such as banking fees, open banking regulations, and data privacy. However, recent leadership transitions, staff reductions, and speculation about consolidation have introduced some uncertainty about the agency’s short-term direction. The administration has now nominated Jonathan McKernan, a former FDIC board member, as the new permanent director. The status of pending rules, including those affecting payments and financial data access, will likely be shaped by future executive and judicial decisions under his leadership, once confirmed.

The MAG will continue monitoring these developments and advocating for policies that support merchant interests and increase competition in the payments industry. For more information or to stay engaged with our advocacy efforts, please reach out to Leslie Crisp to join our Advocacy and Communications Committee.