Sen. Marshall drops card fee amendment amid White House push on crypto bill

Republican Sen. Roger Marshall has privately agreed not to pursue his proposal on credit card processing fees during the Senate Agriculture Committee’s markup of a crypto market structure bill, after White House involvement, people familiar with the talks indicated, Politico reports.

Marshall filed the amendment last week to require more competition on swipe fees. He later signaled he would not seek a vote on it, as the provision was viewed as a risk to the bill advancing out of committee, according to people with knowledge of the discussions.

The Agriculture Committee, which shares oversight of digital assets with Senate Banking, had planned to hold the markup on Thursday in Washington. The meeting was postponed to Tuesday, Feb. 3, because a major winter storm disrupted travel and congressional schedules. The bill is intended to set out how federal regulators supervise key parts of the crypto sector.

Members and staff across the Agriculture and Banking panels have been negotiating revisions for weeks while seeking bipartisan backing. Draft language under review has covered ethics and conflicts of interest for market participants and potential limits on stablecoins. Several proposals were set aside to avoid complications during committee votes.

Marshall’s swipe-fee idea drew attention from both parties. Democratic Sens. Dick Durbin and Peter Welch backed the concept, while several Republicans objected, warning it could put banks and card networks at odds with large retailers. That split raised concerns that attaching the amendment could derail the crypto bill in committee, people involved in the process noted.

Timing remains sensitive on Capitol Hill, with the administration urging a clean vote to move the package through committee as Congress faces the risk of a partial government shutdown as soon as Saturday amid funding disputes.

Senate Agriculture Republicans released their own version of the crypto bill on Wednesday without support from committee Democrats. People familiar with the draft said it contains provisions viewed as protective of crypto software developers.

The Senate Banking Committee has not set a new date for its rescheduled markup. The timetable could slip to late February or March as its agenda shifts to work on the administration’s affordability initiatives, according to people familiar with the planning.

As we reported earlier, at the World Economic Forum in Davos, Circle CEO Jeremy Allaire dismissed warnings that interest-bearing stablecoins could drain bank deposits, calling yield-driven runs “totally absurd.” Discussions in Davos referenced the proposed US CLARITY Act on federal market structure for digital assets, and Allaire projected “billions of AI agents” will need to pay and get paid, saying stablecoins are the option available now.