Major U.S. credit card and payments stocks dipped after President Donald Trump called for a one-year cap on credit card interest rates, reigniting concerns over regulatory risk for the sector.

Shares in Capital One tumbled nearly 9% in premarket trading Monday by 09:47 GMT, while Citi, JPMorgan, and Wells Fargo fell around 4%, 3%, and 2%, respectively.

Barclays slid 2.5%, American Express 4.4%, while Visa and Mastercard each slipped nearly 2%.

The moves come after Trump said in a social media post on Saturday that he wants to impose a 10% ceiling on credit card annual percentage rates (APRs) starting January 20, arguing that Americans are being “ripped off” by rates in the 20–30% range.

That said, analysts at Raymond James said the president does not have the authority to unilaterally impose such a cap, noting that interest rate limits would require an act of Congress.

Led by Ed Mills, analysts described the legislative risk as “relatively low,” but warned it is “clearly higher” now that Trump has publicly pushed the issue.

They also warned that a rate cap could have unintended consequences, arguing issuers would likely tighten credit standards because they could no longer appropriately price for risk. That could lead to reduced access to credit for higher-risk borrowers and potential pressure on account growth and spending volumes.

“While we believe the rate cap has a low probability of passing Congress, we see the biggest possible risk for issuing processors and, to a lesser extent, the networks,” such as Mastercard and Visa, analysts said.

They said it expects intense industry pushback if the proposal gains traction, with banks likely to argue that a cap would “cut off credit to the same borrowers that the President is trying to help.”

“A key issue to watch in the coming days and weeks will be the response of the chairmen of the House Financial Services Committee and the Senate Banking Committee,” analysts noted.

Separately, Mizuho analyst Dan Dolev said Trump’s call for a 10% cap could “have major positive ramifications” for buy-now-pay-later and personal loan providers if banks pull back from lower-FICO borrowers, such as Affirm, Upstart, SoFi Technologies, Block, and PayPal.

Dolev noted that average U.S. credit card APRs hover around 20% and that more than half of U.S. consumers fall below a 745 FICO score, where borrowing costs are higher.

In that scenario, displaced borrowers could increasingly turn to alternative lenders, boosting volume growth for BNPL and personal loan platforms.