Crypto regulation proves more than some firms bargained for
June 30th is the deadline for full compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation. It’s the world’s first comprehensive framework governing crypto exchanges, stablecoin issuers, and digital asset service providers. The EU’s securities regulator (ESMA) enforces MiCa and maintains a public registry of licensed firms.
Why It Matters
Although the crypto firms have argued that regulatory uncertainty was holding them back, the comprehensive MICA requirements might be more than they bargained for. Per PYMNTS, some crypto firms, including Binance, the world’s largest, may lose its ability to offer some services within the EU after encountering challenges obtaining required licenses. Tether, the stablecoin issuer, has discontinued its euro-dominated stablecoin. Undoubtedly, MiCA puts crypto firms smack in the midst of the regulatory maelstrom.
OCC preempts state laws regulating debit card interchange fees
Links: https://www.forbes.com/advisor/business/interchange-fees
In April, the OCC issued an “interim final rule” reinforcing its position on current law, which is that credit and debit card interchange fees are protected “non-interest charges,” which preempts state laws seeking to regulate them. The NCUA (federal regulator of nationally chartered credit unions) has now issued a similar interim rule (also scheduled to go into force on June 30th) to maintain a level playing field between the two types of federally chartered depository institutions. Meanwhile, the question of preemption is being litigated in the courts with the first round of decisions ruling in favor of the states wanting to regulate interchange fees.
By writing interchange authority into a formal regulation rather than relying on interpretive letters or informal guidance, the OCC constructed a legal barrier that is far harder for any state to challenge or work around. The rule applies nationwide: any legislature that passes a similar fee restriction will hit the same federal wall when it comes to nationally chartered banks.
Why It Matters
Interchange fees (a/k/a swipe fees) are transaction fees charged by the card issuing bank to the merchant’s acquiring bank whenever a customer uses a credit or debit card. The fee is charged to cover the issuing banks costs in providing and maintaining the card, handling fraud risk, and offering rewards programs. All told, U.S. merchants paid an estimated $176 billion in total card processing fees in 2024.
Several actions could impact the current state of transaction fees, including whether states challenge the rule in court, whether Congressional action impacts the rule, and whether Visa and Mastercard amend their interchange fees in the wake of political pressure.
