March 28 (Reuters) - U.S. Senator Elizabeth Warren and

other Democratic lawmakers renewed calls for financial

regulators to direct the use of a payment code for firearms

retailers, citing conflicting new state laws on the matter, a

March 27 letter seen by Reuters shows.

A total of 33 U.S. senators and representatives urged

regulators including U.S. Treasury Secretary Janet Yellen to

issue guidance for banks and payment networks to implement a new

"merchant category code," or MCC, approved by an international

standards body in 2022.

WHY IT'S IMPORTANT

New federal guidance could resolve what, if any, new

information payment networks should collect from firearms

retailers.

Payment card companies including Visa and Mastercard ( MA )

have paused much of their work to implement the new code,

citing regulatory uncertainty.

CONTEXT

Laws passed by U.S. Republicans in at least seven states

limit the use of the new code over concerns that it could be

used to infringe upon gun rights enshrined in the U.S.

Constitution's Second Amendment. Meanwhile, California has

passed a law to promote its use and a similar bill is pending in

Colorado.

The new code will not show specific items purchased but will

identify where a person shopped by adding gun stores to a list

of hundreds of existing retail categories. Proponents say the

codes would help banks to flag suspicious purchases to reduce

gun violence.

KEY QUOTES

"The need for uniform, clear federal guidance on this

interstate commerce issue is becoming increasingly clear as

states adopt differing and confusing rules about the gun store

MCC," states the letter sent late on Wednesday led by Warren, of

Massachusetts, and by U.S. Representative Madeleine Dean, of

Pennsylvania. Warren urged similar action a year ago.

A U.S. Treasury Department representative referred questions

about the letter to independent regulators including the Office

of the Comptroller of the Currency. An OCC representative

declined to comment.