Senator Elizabeth Warren has accused the acting Comptroller of the Currency, Jonathan Gould, of violating federal banking law by approving national trust charters for at least nine cryptocurrency companies. In a letter sent Monday, the Massachusetts Democrat argued that the Office of the Comptroller of the Currency (OCC) exceeded its legal authority by granting charters to firms whose planned activities go beyond the narrow scope permitted under the National Bank Act.
Warren demands transparency on charter approvals and Trump ties
The letter specifically calls on Gould to produce the full applications of companies that received OCC approval or conditional approval since December 2025. Those firms include Coinbase, Crypto.com’s parent company, Ripple, Stripe, BitGo, Circle, Fidelity Digital Assets, Protego Holdings, and Paxos. Warren also requested all communications between the OCC and President Donald Trump, members of his family, and White House officials related to the charter decisions.
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“These companies are effectively crypto banks that want to evade the fundamental safeguards and obligations that come with being a bank,” Warren wrote. She added that the approvals pose “serious risks to consumers, the safety and soundness of the banking system, and the separation of banking and commerce.”
Regulatory context and conflict-of-interest concerns
Warren, the ranking member of the Senate Banking Committee, has been a vocal critic of what she views as regulatory favoritism toward the crypto industry under the current administration. She has repeatedly raised concerns about potential conflicts of interest involving Trump’s business ties to digital asset firms. Last week, she pushed for provisions in the CLARITY Act, a crypto market structure bill, during a committee markup. She also urged Gould to delay consideration of a charter application from World Liberty Financial, a Trump family-backed crypto venture that filed in January.
Kraken parent company applies for national trust charter
On May 8, Payward, the parent company of cryptocurrency exchange Kraken, filed its own application for a national trust charter with the OCC. The company stated that, if approved, the charter would allow it to offer fiduciary custody and other services primarily for digital assets under the name Payward National Trust Company. A national trust bank charter permits holders to provide fiduciary and custodial services without engaging in deposit-taking or commercial lending, meaning they are not subject to the same regulatory requirements as traditional banks.
Why this matters
The dispute between Warren and the OCC highlights a broader regulatory struggle over how crypto firms should be classified and supervised. If the OCC’s charter approvals stand, they could set a precedent allowing digital asset companies to operate with fewer consumer protections than traditional financial institutions. Critics argue this undermines the separation of banking and commerce, while proponents say it fosters innovation. The outcome of this oversight battle could shape the regulatory space for crypto banking in the United States for years to come.
FAQs
Q1: What is a national trust charter?
A national trust charter is a license issued by the OCC that allows a company to provide fiduciary and custodial services, such as managing assets or holding digital currencies, without being subject to the same rules as a traditional bank. Charter holders cannot accept deposits or make commercial loans.
Q2: Why is Senator Warren opposing these charter approvals?
Warren argues that the crypto companies approved for charters intend to engage in activities beyond what the National Bank Act permits. She also claims the approvals create a loophole for crypto firms to avoid banking safeguards and raise conflict-of-interest concerns due to the Trump family’s ties to the industry.
Q3: Which crypto companies have received OCC approval since December 2025?
According to Warren’s letter, at least nine companies received approval or conditional approval: Coinbase, Crypto.com’s parent company, Ripple, Stripe, BitGo, Circle, Fidelity Digital Assets, Protego Holdings, and Paxos. Kraken’s parent company, Payward, has also filed an application that remains under review.
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