🚨President Trump says the credit card interest rates will be capped at 10% starting Jan 20, 2026.
This would be one of the biggest changes to consumer finance in decades.
Right now, most Americans are paying 20–30% interest on their credit cards. That means a large part of their monthly payment is not reducing debt, it is just servicing interest. A 10% cap would cut that burden almost in half.
For a household, this is simple:
less money lost to banks,
more money staying in their pocket every month.
More cash in hand means:
• Better ability to pay bills
• Lower financial stress
• More room to spend on daily needs
• And more risk appetite
The U.S. credit card market is over $1.3 trillion. Americans pay more than $100 billion every year just in interest.
If even a small part of that stays with consumers, it becomes spending power. That is a direct liquidity injection into households increasing their risk appetite.
Equities usually respond before anything else. And when equities stabilize, crypto tends to follow because risk appetite improves.
Now comes the bearish risk.
Banks earn a huge part of their profits from credit card interest. At 10%, margins compress sharply.
So banks have a choice:
• accept lower profits
• or protect themselves by tightening lending
That means:
• lower credit limits
• fewer approvals
• stricter lending rules
If this happens, millions of households could lose access to credit.
And that flips the entire outcome.
Instead of more spending, you get:
• less borrowing
• less consumption
• slower money circulation
So this policy has two completely different futures:
1) If credit stays available: This becomes a consumer liquidity boost.
Spending rises > Retail benefits > Markets strengthen > Crypto follows risk on sentiment.
2) If credit tightens: This becomes a credit contraction event.
Spending falls > Banks pull back > Markets get cautious > Crypto faces risk off pressure.
The most important thing will be how this is managed, so that it boosts the economy and does not cripple it.