Overview and Incentives
Lobbying aims to preserve low-cost deposits and fee-heavy rails while discouraging alternatives that pressure margins. Efforts focus on classification and steering adoption toward familiar account architectures.
Preferred Rails: Account-Based Fast Payments
Account-based faster payments (e.g., FedNow) keep settlement control and economics closer to incumbent models.
Rewards Classification: Indirect Interest
Classifying consumer rewards as “interest” pulls programs into banking-style rules, increasing compliance friction.
Narratives: Safety, Fraud, and Complexity
Messaging emphasizes risk and complexity to discourage consumer token rails, while underplaying card fees and settlement delays.
Impacts on Market Design
Issuers adjust with rebates, fee discounts, and disclosure improvements to balance compliance and user value.
Issuer and Platform Responses
Transparent reserves, audited statements, robust redemption mechanics, and compliant reward designs (rebates/discounts) build confidence and regulatory goodwill.
Conclusion
Lobbying seeks to shape rails and reward models. Where token rails offer superior economics, adoption continues despite policy headwinds.