Regulation & Policy
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Elizabeth Warren has requested explanations from the Office of the Comptroller of the Currency (OCC) regarding its approval of national trust bank charters for multiple crypto-related firms, raising concerns about compliance with U.S. banking law and potential systemic risks.
In a letter sent to Comptroller Jonathan Gould, Elizabeth Warren argued that the approvals may violate the National Bank Act and could expose the U.S. banking system to increased risk. She also questioned whether the regulated entities are operating beyond the intended scope of trust banking activity.
Elizabeth Warren said the OCC has approved national trust banking charters for several crypto companies and their affiliates, including Coinbase, Circle, Ripple, Paxos, BitGo, Fidelity Investments, Crypto.com, Stripe, and Protego.
Since President Donald Trump returned to office, the OCC has reportedly expanded approvals for crypto-focused trust institutions operating under a narrower regulatory framework than traditional commercial banks.
National trust companies are regulated financial entities that typically operate under more limited supervisory requirements than full-service banks. They are generally permitted to provide fiduciary services, such as asset custody and management on behalf of clients, but they do not accept insured deposits.
Following the passage of the GENIUS Act, many crypto firms have pursued trust charters as a regulatory pathway to support stablecoin issuance, redemption, custody, and reserve management functions tied to dollar-pegged digital assets.
Elizabeth Warren argued in her letter that several of the approved firms appear to be engaging in activities that extend beyond fiduciary services, including payments processing, lending-related functions, and stablecoin operations that resemble deposit-taking activity.
The senator has asked the OCC to provide detailed documentation on the approved charters and clarify whether national trust companies are permitted to conduct non-fiduciary business activities.
She also requested records of communications between OCC officials and President Trump, his family, and associates relating to crypto-related charter approvals.
The inquiry follows broader scrutiny in Congress over how federal regulators are defining the boundaries of crypto-linked banking activities and whether existing frameworks adequately address the risks associated with stablecoin infrastructure.
The issue was previously raised during a Senate hearing in February, where Elizabeth Warren questioned Comptroller Gould about a pending national trust bank application involving World Liberty Financial, a crypto venture associated with the Trump family.
During that hearing, Gould declined to commit to delaying or rejecting the application, prompting Elizabeth Warren to accuse him of enabling potential conflicts of interest.
Earlier this month, Zach Witkoff said the company was in the final stages of receiving conditional approval from the OCC.
The growing use of national trust bank charters by crypto companies highlights a regulatory gap between traditional banking definitions and newer digital asset business models.
While trust charters provide a pathway for custody and asset management services under federal supervision, their use by firms involved in stablecoin issuance and payment infrastructure continues to raise questions among policymakers regarding regulatory scope, financial risk boundaries, and consistency with banking law
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