MAG Insights

As the midterm elections loom overhead, 2026 is proving to be quite busy in Congress, the courts, and in state legislatures. Many state legislatures are considering swipe fee bills to remove interchange from sales tax and tips, while federal payments policy priorities are under consideration in Congress or by regulators. In addition, the courts have been busy on a number of payments-related cases. Here are some Spring highlights.

Senate Banking Advances Clarity Act

The Senate Banking Committee passed the Clarity Act, a bill that establishes a regulatory framework for cryptocurrency and digital assets, with a bipartisan vote of 15-9 on May 14. The bill, which passed the House of Representatives in July 2025, will now move to the full Senate for consideration. During the committee markup, Senators had many debates regarding certain provisions and amendments to the legislation, and several Senators called for continued negotiations during the next phase of the Senate process, which includes reconciliation with the Senate Agriculture Committee’s version of the bill.

OCC Weighs in on IFPA

In April, the Office of the Comptroller of the Currency (OCC) announced two interim final actions regarding the Illinois Fee Prohibition Act (IFPA). The OCC issued an interim final rule focused on banks’ ability to charge certain fees under Federal law and an interim final order stating that Federal law preempts the IFPA. This is directly contrary to the U.S. District Court for the Northern District of Illinois ruling that the National Bank Act did not preempt the IFPA’s ban on charging interchange fees on the tax and gratuity portions of a transaction.

Banking groups appealed the ruling, and on May 8, 2026, the Seventh U.S. Circuit Court of Appeals vacated the decision and remanded the legal challenge back to the District Court. In a hearing on May 14, Judge Kendall granted parties one week to provide supplemental information, and she will consider the developments from the OCC’s interim final rule and interim final order.

The OCC’s comment period regarding their interim final rule and order is open through May 29, 2026, and MAG plans to submit comments.