Elizabeth Warren Challenges OCC Over Crypto Banking Charters

U.S. Senator Elizabeth Warren has criticized the Office of the Comptroller of the Currency (OCC) for granting banking-related approvals to crypto companies, arguing that several firms are receiving privileges similar to traditional banks without meeting the same regulatory standards. In a letter addressed to Comptroller Jonathan Gould, Warren claimed the OCC has approved nine national trust charters for crypto-focused firms since 2025, raising concerns about the legality and risks tied to those approvals.

According to Warren, many of the approved companies appear to operate more like full-service crypto banks rather than fiduciary trust institutions. She specifically referenced major crypto firms such as Coinbase and Ripple, stating that these companies are seeking access to banking services and operational flexibility while avoiding the stricter oversight imposed on federally chartered banks.

The senator warned that the OCC’s actions could weaken consumer protections and create threats to the broader financial system. Warren argued that these crypto firms may be using regulatory loopholes to provide services like crypto custody, payments, lending, and stablecoin operations without complying with banking regulations that traditional institutions must follow.

Warren also criticized what she described as “regulatory arbitrage,” claiming that some approved business models involve non-fiduciary custodial services and stablecoin activities closely tied to deposit-taking functions. She believes these operations stretch beyond what national trust charters were originally designed to permit.

In addition, the Massachusetts senator questioned whether political influence may have impacted the OCC’s approval process. She requested records of communications between OCC officials, White House representatives, and members of the Trump family. Warren also asked for information regarding a charter application tied to World Liberty Financial (WLFI), which has recently faced scrutiny over the sale of 5.9 billion tokens.

The senator urged the OCC to provide copies of the approved charter applications and a legal explanation supporting the decisions by June 1, 2026. Meanwhile, former President Donald Trump previously signed an executive order aimed at easing banking restrictions for crypto and fintech companies, further intensifying the debate over crypto regulation in the United States.