Senator Backs Down on Card Fee Battle to Rescue Crypto Bill — Can It Pass Now?

In a significant concession, Republican Sen. Roger Marshall (R-KS) has agreed not to introduce a controversial amendment targeting credit and debit card transaction fees (“swipe fees”) during the Senate Agriculture Committee’s markup of major cryptocurrency legislation, scheduled for Thursday, January 29, 2026 (delayed from earlier dates due to weather). The decision, reached in private discussions over the weekend, aims to prevent the provision from derailing progress on the broader digital asset market structure bill.

Marshall’s proposed amendment mirrored his longstanding Credit Card Competition Act (co-sponsored with Sen. Dick Durbin, D-IL, and supported by Sen. Peter Welch, D-VT), which seeks to force payment networks like Visa and Mastercard to offer more routing options, potentially lowering interchange fees for merchants. The move had drawn opposition from banks, credit unions, and some Republicans, who argued it was unrelated to crypto regulation and risked fracturing bipartisan support needed for the bill.

By shelving the amendment—following lobbying from the White House, crypto advocates, and financial industry groups—Marshall has cleared a key hurdle. Industry stakeholders, including credit union associations, hailed it as a victory that keeps the focus on crypto-specific reforms, such as clarifying oversight between the CFTC and SEC, consumer protections, stablecoin rules, and anti-fraud measures.

The underlying legislation (often referred to in drafts as the Digital Commodity Intermediaries Act or similar market structure framework) seeks to provide long-sought regulatory clarity for digital assets, exchanges, intermediaries, and innovations like DeFi and stablecoins. Supporters view it as vital for U.S. competitiveness in blockchain while addressing risks like manipulation and fraud.

Market reactions have been cautiously positive, with analysts noting improved odds of committee advancement. However, challenges persist: other amendments remain (e.g., on ethics rules for officials, CFTC commissioner requirements, bailout prohibitions, and foreign adversary restrictions), and the bill must navigate partisan divides, potential Senate Banking Committee input, and floor hurdles requiring broader consensus.

No final vote timeline is set, but aides indicate negotiations are intensifying. Industry groups emphasize that separating payment reforms from crypto policy allows each to proceed on merit. For now, the retreat on card fees has breathed new life into the effort, though full passage remains uncertain amid ongoing debates.