Mandating that tracking for anti-fraud be vertically integrated with the payment network seems unnecessary. Surely the law could instead mandate the acceptable uses of such data? The issue at present appears to be the lack of regulation, not scofflaws.

I'm not convinced tracking is the only or even a very good way to go about this though. Mandating chip use would largely solve the issue as it currently stands (at least AFAIK). The card provider doing 2FA on their end prior to payment approval seems like it works just as well in practice.

At this point my expectation is that I have to do 2FA when first adding a new card to a platform. I'm not clear why they should need to track me at that point.