Senator Elizabeth Warren Accuses OCC of Violating Banking Laws with Crypto Charters
Massachusetts Senator Elizabeth Warren has accused the United States Comptroller of the Currency (OCC), Jonathan Gould, of violating banking laws by approving national trust charters for cryptocurrency companies. In a letter to Gould, Warren stated that the OCC chief had approved at least nine national trust deeds for crypto companies, which appears to go beyond the narrow activities permitted by law, and is an apparent violation of the National Bank Act.
Warren asked Gould to provide the full applications of crypto companies that the OCC had approved or conditionally approved since December 2025, including Coinbase, Crypto.com’s parent company, Ripple, Stripe, BitGo, Circle, Fidelity Digital Assets, Protego Holdings, and Paxos. She also requested communications between the office and US President Donald Trump, members of his family, and White House officials.
Source: US Senate Banking Committee
According to Warren, these companies are “effectively crypto banks that seek to evade the basic protections and responsibilities that come with being a bank.” She believes that Gould’s decision to facilitate this regulatory arbitrage not only contradicts federal law but also poses serious risks to consumers, the safety and soundness of the banking system, and the separation of banking and commerce.
Criticism of Regulatory Arbitrage and Trump-Linked Companies
Warren, the ranking member of the U.S. Senate Banking Committee, has repeatedly criticized lawmakers and regulators for supporting policies that have potential conflicts of interest related to Trump’s ties to the crypto industry. She pushed for provisions in the crypto market structure bill, the CLARITY Act, in a committee proposal last week and called on Gould to delay the audit of Trump family-backed crypto company World Liberty Financial, which filed for charter in January.
Cointelegraph reached out to the OCC for comment but did not receive an immediate response. The controversy surrounding crypto charters and regulatory arbitrage has sparked concerns about the lack of oversight and the potential risks to consumers and the financial system.
Recent Developments and Applications
On May 8, Payward, the parent company of cryptocurrency exchange Kraken, filed an application for a national trust charter with the OCC. The company said that if approved, the charter would allow it to offer “custody and other services primarily for digital assets” under the Payward National Trust Company. A national trust bank charter primarily allows holders to provide trust and custody services without accepting deposits or making commercial loans, meaning they are not subject to the same regulatory requirements as traditional banks.
As the debate surrounding crypto regulation continues, it is essential to consider the potential implications of these developments on the financial system and consumers. For more information, visit https://cointelegraph.com/news/elizabeth-warren-seeks-occ-communications-crypto-trust-charters-eyeing-trump-links?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound
