Trump’s credit card rate cap shakes Wall Street, but Klarna CEO sees opportunity 👀💳; Coinbase is betting big on prediction markets infrastructure 💸📈

FinTech is Eating the World, 14 January

Hey Everyone,

Good morning & happy Wednesday! Today all eyes are on Trump’s credit card rate cap, which already shook Wall St., yet Klarna CEO sees a lucrative opportunity here (what’s happening, why it matters and what it could mean for banks, card companies & where’s the opportunity for FinTech + bonus deep dives into Klarna & SoFi inside, and why I’m bullish on both of them), and Coinbase that’s betting big on prediction markets infra (why their queit M&A of prediction markets clearing company could be huge, and how it perfectly fits into the Everything Exchange strategy + bonus deep dives into Coinbase & Robinhood inside). So let’s jump straight into the good stuff 🌶️

Trump’s credit card rate cap shakes Wall Street, but Klarna CEO sees opportunity 👀💳

The news 🗞️ President Donald Trump’s proposal to cap credit card interest rates at 10% has sent shockwaves through the financial sector, triggering sharp declines in bank stocks while opening a potential strategic window for FinTech disruptors like Klarna KLAR 0.00%↑.

Announced via Truth Social on Saturday, the one-year cap would take effect on January 20th - the anniversary of Trump’s second inauguration. With average credit card APRs currently hovering around 22% and some subprime rates exceeding 30%, the proposal represents a dramatic intervention in the $1 trillion consumer credit market.

Let’s take a quick look at this, break it down, and see what’s next.