Recently, the credit card interest rate regulation policy announced by Trump has caused quite a stir in the financial circle. Starting from January 20, 2026, the cap on US credit card interest rates will be directly set at 10%. How big is the impact on Wall Street? Just look at the reaction of traditional banking industry — originally stable profit sources are suddenly under pressure.

First, let's look at the current situation. How crazy are the interest rates in the US credit card market? The average rate has already surpassed 22%, with retail credit cards reaching as high as 29%, and the annualized delinquency loan rate can even reach 18.25%. To some extent, these figures are more astonishing than the returns of many crypto financial products. Once the policy takes effect, lowering the rate from 29% directly to 10%, the profit margin of banks' credit card business will be greatly compressed. This business was originally an important pillar of bank income, and now that pillar has to bear more weight.

From the perspective of the crypto market, the chain reaction of this policy cannot be underestimated. First, capital flows may change. When bank profits are limited, financial institutions often adjust their asset allocation strategies. Funds originally stored in traditional financial channels need to find new outlets, and crypto assets, as high-risk, high-reward options, will become more attractive in a low-interest-rate environment. Historical data has long proven this — whenever traditional financial yields decline, risk assets tend to attract a wave of incremental funds.

Second, market expectations will initially release volatility. Policies like Trump's usually have a characteristic: signals are released first, followed by a long discussion and implementation phase. In the short term, the implementation plan is still unclear, and this uncertainty is most likely to trigger market sentiment. The volatility of traditional financial markets often drives reactions in the crypto market.