Coinbase · New York · CLARITY Act · Decrypt
Visa Moves to Close Meme Coin Credit Card Rewards Loophole
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Banks came away empty-handed in their bid for tighter restrictions on stablecoin rewards after the Clarity Act failed to advance in the Senate this week.
Key facts
- The move comes after The Block published an investigation finding that users of the Robinhood Wallet and Fomo apps could purchase meme coins with credit cards through Apple Pay or Google Pay
- Crossmint defended its approach by pointing to a 2025 SEC staff statement that described certain meme coins as akin to collectibles rather than securities
- The New York attorney general’s office also told The Block it was aware of and reviewing the matter
- Banks came away empty-handed in their bid for tighter restrictions on stablecoin rewards after the Clarity Act failed to advance in the Senate this week
Summary
Visa is moving to close a loophole in Crossmint-powered checkouts that let meme coin purchases made with credit cards be processed under a merchant code meant for digital media. The move follows a challenge from Chase, which said one Visa transaction was misclassified and shouldn't have earned rewards; the New York AG's office is also reviewing the matter. Meme coin purchases will continue but must be coded as crypto transactions, subject to Visa's rules; processors have a grace period expected to end next week. Visa is moving to close an apparent loophole in checkouts powered by Crossmint, a crypto payments infrastructure firm, according to a source familiar with the matter.