A proposed 10% interest rate cap on U.S. credit cards would have serious consequences for asset-backed securities (ABS) markets. According to financial analysis, such a policy would significantly erode the loss absorption capacity that currently protects ABS investors. This matters because securitized credit products form a major part of traditional finance infrastructure. When loss buffers weaken, it increases volatility and reduces investor confidence in these instruments. The ripple effects could touch multiple asset classes and market segments. For those tracking macro trends and policy-driven market shifts, this is worth monitoring closely—regulatory changes in traditional finance often create spillover effects across different investment categories and risk management frameworks.