New York, January 12, 2026, 11:12 (ET) — Regular session
- SoFi shares slipped roughly 1.7% by late morning, retreating after an initial surge.
- The latest move is being driven by President Donald Trump’s call for a one-year 10% cap on credit-card rates.
- Investors await policy details before Jan. 20, alongside SoFi’s earnings report set for Jan. 30.
Shares of SoFi Technologies (SOFI.O) slipped roughly 1.7% to $26.94 by 11:12 a.m. ET on Monday, after earlier hitting $28.05. Traders initially jumped on a Washington-related headline, only to pull back soon after.
The stock finds itself pulled in opposite directions. A cap on credit-card interest rates might squeeze banks and card issuers but could steer some borrowers toward personal loans — a core area for SoFi.
The timing matters — the proposal dropped just as investors were digging into consumer credit trends and scouting fintech’s next growth area. Yet, no one really knows what parts would hold up in practice, and that kind of uncertainty usually hits the tape first.
Trump announced on Truth Social that a cap would begin Jan. 20 and stay in place for a year, but didn’t explain how companies would be forced to follow it. He called for “a one year cap on Credit Card Interest Rates of 10%,” while banking trade groups cautioned this move would “reduce credit availability.” 1
Wall Street remains largely doubtful that the proposal will advance swiftly, or even pass at all. TD Cowen analysts emphasized that “a card rate cap can only be done by Congress,” while Barclays pointed out the president’s “limited ability to implement this unilaterally.” 2
Credit cards function as revolving credit, meaning balances roll over and interest compounds if only minimum payments are made. Reuters reported that average U.S. card rates hover around 20%, noting that a pullback from issuers might drive some consumers toward other options. Jefferies cautioned that consumers could face restrictions from card companies, potentially dampening spending. 3
SoFi CEO Anthony Noto pushed the substitution angle hard. “Consumers, however, will still need access to credit. That creates a large void,” he tweeted on X, suggesting personal loans could pick up the slack if credit card issuers pull back. 4
Some zeroed in on the legal mechanics. A UBS note argued, “It would take an Act of Congress for such rate caps,” given the hurdles an executive order would probably encounter. The Reuters report also highlighted a Federal Reserve figure showing average credit card interest rates hit 20.97% in November. 5
Some analysts are already sizing up the fintech winners and losers. Dan Dolev at Mizuho suggested the move could bring “major positive ramifications for BNPL and personal loan providers,” covering firms like SoFi and rivals Affirm and Upstart. BNPL refers to checkout financing that breaks a purchase into installments. 6
But SoFi faces a riskier path. Should banks retreat and more high-risk borrowers turn to non-bank lenders, delinquencies might climb even if demand grows. This could trigger broader policy debates, potentially affecting other consumer products or leading to stricter regulations.
SoFi is gearing up for its next key event. The company will report fourth-quarter and full-year 2025 results before markets open on Jan. 30, followed by a conference call at 8 a.m. ET. Investors will be watching closely for updates on loan growth and credit performance. 7
Traders are on alert for any sign that Trump’s proposal might become formal legislation before the Jan. 20 deadline. Tuesday brings U.S. CPI data and big-bank earnings kicking off with JPMorgan, both likely to reshape sentiment — all ahead of SoFi’s Jan. 30 earnings report. 8
