Trump Proposes 10% Cap on Credit Card Interest Rates

Donald Trump announced a proposal to cap credit card interest rates at 10%, triggering a pre-market decline in U.S. bank stocks, including JPMorgan and Citibank, on January 12, 2026.

The initiative highlights potential shifts in borrowing costs, impacting banking profitability and possibly benefiting decentralized finance as regulatory dynamics evolve.

Trump Proposes 10% Cap on Credit Card Interest Rates

Donald J. Trump announced a significant proposal to cap credit card interest rates at 10%, criticizing current high rates. This move, posted on Truth Social, marks a notable policy shift aiming at consumer financial relief. U.S. bank stocks such as JPMorgan, Citibank, and Bank of America saw pre-market declines, indicating market unease.

A major change stemming from this announcement is the potential for increased consumer protection. If implemented, the rate cap could severely impact banks’ profit margins. Banking stocks reacted negatively, with significant losses not seen since the 2008 financial crisis amid regulatory uncertainties.

Market reactions were swift, reflecting concerns about profitability. Jamie Dimon, Jane Fraser, and Brian Moynihan have not yet commented. Analysts speculate the action could bolster DeFi platforms, with Arthur Hayes labeling it a setup for increased decentralized lending.

Bitcoin’s Steady Rise Amid Interest Rate Debates

Did you know? In 2022, a similar proposal to cap credit card fees led to a 1-2% dip in bank stocks. The market, however, rebounded within 48 hours.

Bitcoin (BTC) priced at $90,655.84, with a market cap of approximately $1.81 trillion, has experienced a -0.02% change in the past 24 hours. Trading volume surged to around $29.30 billion within the last day. Despite recent volatility, BTC’s current market dominance stands at 58.49%, per CoinMarketCap.

Financial analysts at Coincu warn that a potential long-term cap could incentivize growth in decentralized finance sectors, with historical parallels drawn to past regulatory actions. A shift towards blockchain-based credit solutions might accelerate if traditional bank lending becomes constrained.