Robinhood Wallet and Fomo Enable Credit Card Purchases of Meme Coins, Sparking Regulatory Debate

According to Huoxing Finance, on September 2, Robinhood Wallet and the Fomo app enabled users to directly purchase meme coins using Visa or Mastercard credit cards via Apple Pay or Google Pay, without requiring any identity verification, while still earning standard credit card rewards or cashback—a feature that has sparked controversy. The service is provided by crypto infrastructure company Crossmint, whose Token Checkout product categorizes meme coin purchases under MCC 5815 (“Digital Goods and Media”), a classification originally intended for digital books, movies, and similar items. Chase, a card issuer under JPMorgan Chase, after investigating, stated that these Visa transactions were not flagged as cryptocurrency purchases; the bank considers the MCC classification incorrect and ineligible for rewards, and has formally lodged a complaint with Visa. Meanwhile, the Office of the Attorney General of New York State has been notified and is reviewing the matter. Crossmint maintains that the classification is valid, citing prior SEC statements that certain meme coins can be considered “digital collectibles” in a securities context, and referencing a joint SEC-CFTC guidance example that lists WIF as a digital collectible. Payment experts note that card network rules and SEC guidance represent “two entirely separate systems”; Visa and Mastercard have clear MCC codes—6051/6012—and specific labeling requirements for direct cryptocurrency transactions, which are not exempted based on a “collectible” designation.