|
Getting your Trinity Audio player ready...
|
- Elizabeth Warren says crypto firms are receiving banking-like privileges without strict bank regulations.
- The OCC has approved nine crypto-related trust charters since 2025.
- Warren is demanding records and legal explanations tied to the charter approval process.
U.S. Senator Elizabeth Warren is escalating her criticism of the crypto industry, this time targeting the Office of the Comptroller of the Currency (OCC) over its approval of banking charters for digital asset firms. In a new letter addressed to Comptroller Jonathan Gould, Warren argued that several crypto companies are receiving privileges similar to traditional banks without facing the same regulatory obligations.
The dispute adds fresh tension to the ongoing debate over how crypto firms should operate within the U.S. financial system as regulators and lawmakers remain divided on the sector’s role in mainstream banking.
Warren Questions OCC’s Crypto Charter Approvals
According to Warren, the OCC has approved nine national trust charters for crypto-related companies since 2025. She argued that some of these firms appear to function more like full-service crypto banks than fiduciary trust companies permitted under existing law.
Among the companies mentioned were Coinbase and Ripple. Warren claimed these firms are seeking access to banking-style operations while avoiding the stricter oversight applied to federally regulated banks.
In her letter, the senator warned that the OCC’s decisions could expose consumers and the broader financial system to unnecessary risks. She also argued that allowing crypto firms to operate under trust charters may weaken the long-standing separation between banking and commerce.
Concerns Over Regulatory Loopholes
Warren accused regulators of enabling what she described as “regulatory arbitrage,” where companies pursue less restrictive licenses to bypass tougher banking requirements.
She noted that several approved entities reportedly plan to offer services tied to crypto custody, payments, lending, and stablecoins — activities she believes go beyond traditional trust company responsibilities. Warren argued that these services closely resemble core banking operations but may not be subject to the same safeguards designed to protect customers and maintain financial stability.
The senator further questioned whether political influence played any role in the charter approval process. She requested records of communications involving OCC officials, White House representatives, and members of President Donald Trump’s family.
Trump Administration Takes Different Approach
The criticism comes as the Trump administration continues to promote a more crypto-friendly regulatory stance. President Trump previously signed an executive order aimed at easing banking restrictions affecting crypto and fintech firms, signaling broader support for digital asset innovation.
Warren also sought details regarding a charter application linked to World Liberty Financial, which has recently faced scrutiny over the sale of 5.9 billion tokens.
The senator has requested that the OCC provide copies of approved charter applications and a legal explanation of its decisions by June 1, 2026. The outcome could shape future debates around crypto banking access and federal oversight in the United States.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
