By Jason Stverak

In a time when the nation’s focus should be on strengthening American innovation, economic competitiveness, and national security, some in Congress are quietly advancing a policy that would do the exact opposite: weaken cybersecurity, limit access to credit, and place a dangerous burden on the financial institutions serving our servicemembers and veterans.

This policy is the so-called Credit Card Competition Act (CCCA), now being pushed as an amendment to the GENIUS Act. Let’s be clear: the CCCA is a harmful piece of legislation that doesn’t belong in the GENIUS Act—or any legislation.

As the chief advocacy officer of the Defense Credit Union Council, representing credit unions with more than $500 billion in assets and over 40 million credit union members worldwide, I can say unequivocally that the CCCA threatens the financial stability and readiness of military families. It must be rejected.

A Misleading Premise, A Dangerous Outcome

Proponents of the CCCA claim it’s about competition. But in reality, it’s a massive government intervention that mandates routing requirements on credit card transactions, forcing financial institutions to process payments through at least two unaffiliated networks—including potentially unproven, unsecure, or foreign-controlled systems.

This is not theoretical. It’s a direct attack on the ability of financial institutions to choose the most secure networks to protect cardholder data. For defense credit unions, which serve junior enlisted members, deployed personnel, and wounded veterans at VA facilities, this is a nightmare scenario. These institutions invest heavily in cybersecurity, fraud prevention, and financial readiness programs tailored to military life. The CCCA would dismantle these protections and impose crushing compliance burdens on not-for-profit cooperatives whose only mission is to serve their members.

Military Readiness Includes Financial Readiness

The Department of Defense recognizes financial readiness as a core component of overall military readiness. A soldier distracted by financial stress is a soldier less prepared to serve. And yet, the CCCA would directly undermine that readiness by making it harder and more expensive for credit unions to provide low-cost credit, security-enhanced services, and rewards programs that military families rely upon.

This is not an exaggeration. The original Durbin Amendment on debit cards was supposed to help consumers but ended up slashing benefits, increasing fees, and hurting community institutions. The CCCA would do the same to credit cards. A study from Texas A&M University warned that the legislation could double fraud losses to $20 billion over the next decade. That’s money that would otherwise go into fraud prevention and protecting consumers.

Who Benefits? Not Small Businesses or Consumers

Supporters say the CCCA helps small businesses, but the facts don’t support that claim. A University of Miami analysis found that nearly all the “savings” from the legislation would flow to megaretailers with over $500 million in annual revenue—not mom-and-pop shops on Main Street. In fact, the National Federation of Independent Business doesn’t even list interchange fees in the top 20 concerns of small businesses.

And what about consumers? The legislation would gut rewards programs—used by 77% of lower-income Americans, not just the wealthy—and reduce investments in card security and innovation. That means fewer cashback offers, higher fraud risk, and degraded services for everyday Americans.

Undermining America’s Defense Financial Institutions

Let me be blunt: credit unions are not Wall Street banks. We don’t have shareholders. We don’t exist to maximize profit. Our mission is to serve our members—many of whom are currently deployed or have returned home from service. Attaching the CCCA to the GENIUS Act threatens that mission and would turn a bill focused on financial innovation into a Trojan horse for corporate lobbyists.

Defense credit unions play a unique role. We operate on military installations. We understand the unique needs of military life—from PCS moves and combat-zone deployments to managing benefits at VA hospitals. Our institutions tailor services to those who’ve sworn to defend this nation. And we do it not for profit, but for purpose.

Adding the CCCA to the GENIUS Act or any legislation without a full hearing or debate dishonors that purpose and exploits the very communities Congress claims to support.

Let the GENIUS Act Stand on Its Own Merits

The GENIUS Act is meant to bolster American leadership in digital assets and strengthen our financial infrastructure. Why burden it with unrelated, controversial language that weakens national security and jeopardizes financial readiness?

Credit unions, especially defense credit unions, should not become collateral damage in a corporate lobbying battle over swipe fees. We urge lawmakers to keep the CCCA out of the GENIUS Act and reject any attempt to pass it through backdoor amendments.

This is not about politics. It’s about principles. Standing with those who serve means protecting the institutions that serve them. Congress must do the right thing—and say no to the Credit Card Competition Act.

Jason Stverak is chief advocacy officer with the Defense Credit Union Council. For info: www.dcuc.org.