Page 7 - February 20, 2025 Bulletin

aRTiCLeS

Lawmakers Introduce Bill to Repeal Senators Introduce Bill to Cap Credit
Section 1071 Data Collection Card Interest Rates

Republicans in the House and Senate have introduced legislation Sens. Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) have
to repeal Section 1071 of the Dodd-Frank Act, which requires introduced legislation to cap credit card interest rates at 10%, as
financial institutions to report data on small-business lending. suggested by President Trump during his campaign for office.
The companion bills sponsored in the House by Rep. Roger According to a joint statement by the two senators, the proposed
Williams (R-Texas) and in the Senate by Sen. John Kennedy bill would immediately cap credit card rates upon becoming law.
(R-La.) would eliminate the requirement. The sponsors said It would remain in effect for five years.
Section 1071 imposed increased compliance costs on financial Trump last year proposed capping credit card interest rates at
institutions, potentially reducing access to credit for small 10% “to provide temporary and immediate relief for hardworking
businesses.
Americans.” The president has not indicated whether he will
Last year Congress passed a Senate joint resolution sponsored support the bill.
by Kennedy to overturn the CFPB’s rule implementing Section Read more: https://www.sanders.senate.gov/press-releases/news-
1071, with the resolution receiving bipartisan support. Former sanders-hawley-introduce-bill-capping-credit-card-interest-rates-
President Biden vetoed it. at-10/

Treasury Secretary Bessent Named RTP Network Surpasses One Billion
CFPB Acting Director Transactions

President Trump has designated Treasury Secretary Scott Bessent The RTP network on Jan. 31 surpassed processing one billion
as acting director of the Consumer Financial Protection Bureau payments, a record set roughly 18 months after the network
following the termination of former Director Rohit Chopra.
surpassed 500 million payments, network operator The Clearing
Bessent was confirmed by the Senate as treasury secretary. Trump House said. The network also set a new single-day record for
has yet to announce his long-term plans for the CFPB, but payments volume at 1,592,419 transactions and payments value
he and other Republican lawmakers have been critical of the at $1.44 billion.
bureau in the past. The Washington Post, citing a staff email it The RTP network currently reaches 70% of demand deposit
obtained, said Bessent ordered CFPB staff to cease all work on accounts in the U.S., “meaning that millions of consumers and
crafting regulations, enforcing rules and communicating with the businesses are already benefiting from instant payments through
public, citing the need to promote consistency with the Trump the 850 financial institutions connected to the network,” TCH
administration’s goals. said.
“I look forward to working with the CFPB to advance President Read more: https://www.theclearinghouse.org/payment-systems/
Trump’s agenda to lower costs for the American people and Articles/2025/02/RTP_1Billion_TRX_02-03-2025
accelerate economic growth,” Bessent said in a statement.
Former FDIC Chair Urges
Bessent Confirmed as Treasury Lawmakers to Rethink Credit Union

Secretary Tax Exemption

The Senate has voted 68-29 to confirm Scott Bessent as treasury
secretary, with Republicans and some Democrats voting in favor As the Trump administration searches for cost savings to address
of the nomination. He succeeds Janet Yellen. federal budget deficits, it is time to reexamine credit union tax
subsidies that cost taxpayers billions each year, former FDIC
Bessent is the founder of the investment firm Key Square Group Chairwoman Sheila Bair wrote in an opinion column for the
and a former partner at Soros Fund Management. He appeared Washington Post.
before the Senate Banking Committee earlier this month, where
he called for less regulation on banks and voiced opposition to Credit unions have been abusing their tax-exempt status to
the U.S. creating a central bank digital currency. expand beyond their mandate of serving low- to moderate-
income communities with common bonds, Bair wrote. They have
been acting more and more like for-profit institutions, generating
additional capital from investors, purchasing the naming rights

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