With a January 20, 2026, deadline looming under a proposed policy from former President Donald Trump, major U.S. financial institutions are operating without clear guidance on how a cap on credit card interest rates would be implemented. Industry leaders report widespread uncertainty over compliance requirements, regulatory thresholds, and potential financial impacts.
- A January 20, 2026, deadline has been associated with a proposed federal cap on credit card interest rates under a Trump-aligned policy framework.
- Over $1.2 trillion in credit card debt is outstanding across major U.S. banks, with 65% of accounts currently subject to rates above 18%.
- A cap below 18% could reduce net interest margins by 1.2–1.8 percentage points, potentially costing the banking sector $12–18 billion annually.
- No final rule, legislative text, or enforcement mechanism has been released, leaving institutions without compliance guidance.
- Major issuers including JPMorgan Chase, Bank of America, and Capital One are delaying strategic decisions due to regulatory uncertainty.
- The Federal Reserve has not issued an official stance, and no formal regulatory pathway has been established.
As the January 20, 2026, deadline approaches for implementing a federal cap on credit card interest rates—proposed under a policy framework associated with former President Donald Trump—national banks and credit card issuers are facing a growing operational void. Despite repeated public statements from the Trump campaign and affiliated policy advisors, no final rule has been released, leaving financial institutions without precise parameters for compliance. The absence of a defined cap level, enforcement mechanism, or transition timeline has left banks scrambling to model potential outcomes across portfolios totaling over $1.2 trillion in outstanding credit card debt. Industry leaders from JPMorgan Chase, Bank of America, and Capital One have expressed concern over the lack of specificity. Analysts estimate that a cap set below 18%—a level that would affect roughly 65% of existing credit card accounts—could reduce net interest margins by 1.2 to 1.8 percentage points across the sector. This would translate to potential annual earnings losses of $12 billion to $18 billion, according to internal financial projections shared with regulators in late 2025. The uncertainty is particularly acute for issuers with high balances in the subprime and near-prime segments, where average interest rates currently exceed 22%. The Federal Reserve has not issued a formal response to the proposed policy framework, and no legislative text has been introduced in Congress. As a result, financial institutions are unable to revise risk models, pricing algorithms, or capital allocation strategies with confidence. Analysts note that without regulatory clarity, banks may delay new card launches, restrict credit access for higher-risk borrowers, or shift product offerings toward lower-rate alternatives such as personal loans. These actions could affect millions of consumers, particularly those in low- and middle-income brackets who rely on credit cards for short-term liquidity. The situation underscores a broader challenge in U.S. financial regulation: the impact of policy initiatives that gain political traction without full technical or economic assessment. With the deadline approaching and no resolution in sight, executives are urging federal agencies to clarify the scope and timeline to avoid market disruption and ensure consumer protection remains a priority.