Why It Matters
A federal judge's approval of a $38 billion settlement between Visa and Mastercard, combined with a Trump administration push to deregulate fintech, is the backdrop for a House Financial Services Committee payments hearing preview. The hearing, scheduled for June 24, will examine how payment systems are evolving as lawmakers weigh competing pressures, including merchant demands for lower fees, fintech companies seeking easier market entry, and banks concerned about oversight gaps.
Card network fees touch nearly every consumer transaction. Regulatory decisions about stablecoin frameworks and fintech partnerships could reshape how Americans pay for goods and services. The committee's direction on these issues will influence whether Congress backs administration deregulation efforts or imposes new guardrails.
The Settlement That Sparked Scrutiny
A U.S. federal judge granted preliminary approval on June 9 to the revised $38 billion settlement between Visa, Mastercard, and approximately 12 million American merchants. The court described it as providing "more extensive relief" than a prior $30 billion settlement rejected in June 2024.
Under the new deal, the card networks agreed to lower swipe fees by 0.1 percentage point for five years. Standard consumer rates would be cut to no more than 1.25 percent for eight years. The settlement represents a modest but concrete victory for merchants who have lobbied for years to reduce the fees they pay to process card transactions.
Fintech Deregulation Meets Stablecoin Rules
The hearing occurs as the Trump administration pursues a broader fintech agenda. President Trump signed an Executive Order titled "Integrating Financial Technology Innovation into Regulatory Frameworks" on May 19, directing federal regulators to review rules that "unduly impede fintech firms from entering into partnerships with federally regulated institutions" and to "streamline application processes for eligible fintech firms" seeking licenses.
Simultaneously, Congress is advancing stablecoin legislation. The Senate passed the GENIUS Act on June 17, 2025, establishing a federal regulatory framework and clarifying that payment stablecoins are not securities. The House companion bill, the STABLE Act, passed through the House Financial Services Committee and Agriculture Committee in joint markup on June 10 with votes of 47-6 and 32-19, respectively.
The Federal Reserve has also moved forward, requesting public comment on May 20 on a proposal to establish special-purpose payment accounts for eligible non-bank fintechs and digital asset companies, allowing them to clear and settle payments directly.
The Hearing Details
The House Financial Services Committee will convene on June 24 at 10:00 AM in 2128 Rayburn House Office Building. Rep. French Hill chairs the committee, with Rep. Maxine Waters as ranking member.
Confirmed witnesses include representatives from Bank Policy Institute, Davis Polk & Wardwell LLP, Stripe, Anchorage Digital, and the National Community Reinvestment Coalition, offering perspectives from payment processors, legal experts, crypto-focused institutions, and consumer advocates.
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