Trump may set a 10% cap on credit card interest rates, reshaping the landscape of the financial and crypto markets?

US President Donald Trump posted on social media on January 9th, calling for a one-year cap on credit card annual interest rates set at 10%, starting from January 20th.

Trump stated that this move aims to prevent credit card companies from “exploiting” Americans with interest rates of 20% to 30% or higher, and pledged that if companies do not comply, they will face “very serious consequences.”

However, with strong opposition from the banking industry and Wall Street, how this proposal will be implemented without legislation in Congress remains uncertain.

01 Policy Background

As the one-year anniversary of his inauguration approaches, a statement by President Trump has shaken the financial markets. On the night of January 9th, he posted on the “Real Social” platform, calling for a one-year credit card interest rate cap of 10%.

He criticized that during the Biden administration, credit card interest rates have remained at 20% to 30% or even higher, emphasizing that “credit card companies will no longer be allowed to exploit Americans.”

High credit card interest rates have long been a focus of American social concern. During his 2024 presidential campaign, Trump made this promise, which analysts said would require approval from Congress.

02 Current Interest Rates and Market Size

The current credit card debt burden on Americans is staggering. By Q3 2025, total credit card debt in the US reached $1.23 trillion, a record high.

Data from the Federal Reserve shows that as of November 2025, the average credit card interest rate was about 22.3%, with many credit cards having terms far above this rate. According to Bankrate, a banking rate tracking organization, the average credit card interest rate hit a historic high of 20.79% in August 2024.

Compared to ten years ago, the average interest rate on US credit cards was only 13.9%. The high-interest environment has increased the debt burden on consumers and is a primary reason Trump is pushing for an interest rate cap policy.

03 Reactions from Various Parties

Trump’s proposal immediately triggered strong backlash from the financial industry. Multiple banking organizations, including the American Bankers Association and the Banking Policy Research Institute, issued joint statements warning that this move would “reduce credit supply” and “cause devastating impacts on families and small business owners.”

Banks argue that interest rates reflect the credit risk borne by issuing institutions. If they cannot price risk reasonably, they will have to cut credit limits or stop serving high-risk customers.

Political reactions are complex and contradictory. While some Republicans support Trump’s proposal, it has also faced criticism within the party. Elizabeth Warren, a Democratic senator and member of the Senate Banking Committee, stated that unless Congress passes legislation, Trump’s call is meaningless.

04 Impact on Traditional Financial Markets

The capital markets responded directly to Trump’s proposal. Following the announcement, financial stocks declined. Citigroup, JPMorgan Chase, Wells Fargo, and Bank of America saw their stock prices fall by about 1% to 3%.

First Capital Financial, which mainly issues credit cards, was hit hardest, dropping nearly 7%, making it the most visibly affected financial stock of the day. Meanwhile, payment networks like Visa, Mastercard, and American Express also saw their stock prices decline in tandem.

Industry analysts predict that if a 10% interest rate cap is implemented, issuing institutions could close nearly 90% of credit card accounts, affecting approximately 175 million Americans.

05 Implementation Path and Legal Barriers

Trump has not clearly explained how this plan will be implemented or how he intends to enforce compliance among companies. Currently, the most direct approach is through legislation in Congress, but passing such legislation before January 20th is almost impossible.

The Consumer Financial Protection Bureau (CFPB) is another possible route, but the Trump administration has previously attempted to weaken or even shut down this agency multiple times. The financial industry has also successfully challenged CFPB regulations in federal courts multiple times.

Research firm Wolfe’s U.S. policy chief Tobin Marcus pointed out, “There’s no current legal basis for the government to unilaterally and massively enforce a rate cap,” suggesting it’s more likely to be a pressure tactic using the deadline to force industry concessions.

06 Potential Impact on Cryptocurrency Markets

Trump’s interest rate cap policy could influence the cryptocurrency market through several channels:

DeFi protocols may benefit. If traditional banks tighten credit, DeFi lending platforms could attract more users. Especially, some decentralized lending protocols offering competitive interest rates might become more attractive than restricted traditional credit cards.

Investors might turn to crypto assets. In an environment with limited traditional credit options, some investors may see cryptocurrencies as an alternative investment channel seeking higher yields.

Market volatility could increase. Policy uncertainty in traditional financial markets often leads to capital inflows or outflows in crypto markets, intensifying price fluctuations.

07 Opportunities and Strategic Adjustments for the Crypto Industry

In response to this major policy shift in traditional finance, the crypto industry and platforms like Gate can focus on several key areas:

Develop products integrated with credit card alternatives. Explore opportunities to integrate with emerging consumer credit products, providing users with more fiat on/off ramps.

Monitor regulatory developments and adjust compliance strategies. Any changes in US financial policy could impact crypto regulation, requiring ongoing attention and timely adjustments.

Offer crypto-backed lending products. Develop services allowing users to collateralize crypto assets to obtain stablecoins or fiat loans, providing alternatives for users affected by traditional credit restrictions.

Future Outlook

The legal basis and implementation path of this policy proposal remain unclear. The banking industry strongly opposes it, bipartisan support in Congress is divided, and consumers may face tighter credit conditions.

Meanwhile, every upheaval in the financial sector spurs new opportunities. Amid potential tightening of traditional credit, DeFi protocols have already seen a significant 15% increase in trading volume over the past 24 hours.

Whether Trump’s credit card rate cap policy ultimately materializes or not, it reveals an undeniable fact: the financial world is undergoing profound transformation. Innovation in the crypto industry never ceases.

On the Gate platform, real-time data continues to fluctuate, and chart trends extend into the unknown.