Affirm Holdings, Inc. (AFRM) saw its stock plummet by 5.11% during intraday trading on Monday, as investors reacted to President Donald Trump's proposal to cap credit card interest rates at 10%.

Initially, the proposal was seen as a potential boon for Buy Now, Pay Later (BNPL) providers like Affirm, as it could drive consumers toward alternative credit options. However, the stock's sharp decline reflects growing market uncertainty about the broader implications of the plan, including potential instability in the financial sector and doubts about its feasibility.

Analysts have expressed skepticism about the proposal's likelihood of becoming law, noting that it would require Congressional approval and could face significant opposition. Additionally, concerns about tighter lending standards and reduced credit availability for consumers have weighed on sentiment, contributing to Affirm's intraday drop.