Bank

America

Shift

President Donald Trump

Senator Elizabeth Warren (<a href="https://x.com/SenWarren" rel="noopener noreferrer nofollow">@SenWarren</a>) sent a letter to Office of the Comptroller of the Currency head Jonathan Gould (<a href="https://x.com/USComptroller" rel="noopener noreferrer nofollow">@USComptroller</a>) on Tuesday, pressing him to explain the agency's approval of national trust bank charters for a string of crypto firms, according to Bloomberg.
<h2 id="what-warren-is-arguing">What Warren Is Arguing</h2>
<cite>Warren, the ranking Democrat on the Senate Banking Committee, called for an explanation of approvals for trusts belonging to companies including <a href="https://x.com/Coinbase" rel="noopener noreferrer nofollow">@Coinbase</a>, <a href="https://x.com/Paxos" rel="noopener noreferrer nofollow">@Paxos</a>, <a href="https://x.com/Ripple" rel="noopener noreferrer nofollow">@Ripple</a>, BitGo, and Fidelity Digital Assets.</cite> She argued the firms appear to be operating well beyond the boundaries of what a national trust bank is permitted to do under the National Bank Act.
<cite>Warren said the firms appear to be engaged in activities including trading, payments, lending, and stablecoin issuance beyond what national trust banks typically allow.</cite> Allowing these companies to "act like full-service national banks, while evading the suite of restrictions, safeguards, and obligations" would, she wrote, pose clear risks to consumers and the stability of the banking system.
<cite>The senator pointed out the crypto companies are avoiding the process to be approved as highly regulated, full-service national banks and taking the narrower trust-bank charters, even though she argues they "look like crypto banks, not trust companies."</cite>
<cite>Among her requests for information on the OCC process, she asked for records of any communications between the agency and President Donald Trump or his family members. The Massachusetts lawmaker also singled out <a href="https://x.com/worldlibertyfi" rel="noopener noreferrer nofollow">@worldlibertyfi</a>, the crypto venture that Trump and his family hold a stake in, which has a pending charter application still under OCC review.</cite>
<h2 id="background-the-occ-s-shift-on-crypto">Background: The OCC's Shift on Crypto</h2>
<cite>Since the arrival of President Donald Trump's administration, the OCC, run by his appointee Jonathan Gould, has shifted from a crypto-resistant stance to a more accommodating approach.</cite><cite>In December 2025, the OCC announced conditional approval for several prominent cryptocurrency firms, including <a href="https://x.com/Ripple" rel="noopener noreferrer nofollow">@Ripple</a>, BitGo, <a href="https://x.com/Paxos" rel="noopener noreferrer nofollow">@Paxos</a>, and Circle, to establish national trust banks.</cite>
<cite>Earlier this year, the OCC also finalized a new rule clarifying that national trust institutions may engage in "non-fiduciary activities," arguing the National Bank Act never prohibited such activities, though critics say this represents a broadened reading of trust bank powers.</cite>
<cite>The Independent Community Bankers of America formally opposed the approvals, calling Coinbase's charter conditional approval "a grave mistake" and arguing the OCC lacked statutory authority to expand non-fiduciary trust powers.</cite> Warren's letter adds political pressure to that industry opposition, raising questions about whether the OCC's chartering push will face further legal or congressional challenges.
Sources: <a href="https://www.coindesk.com/policy/2026/05/19/senator-elizabeth-warren-accuses-u-s-regulator-of-approving-unqualified-crypto-banks" rel="noopener noreferrer nofollow">CoinDesk: Senator Elizabeth Warren Accuses U.S. Regulator of Approving Unqualified Crypto Banks</a> <a href="https://www.coindesk.com/policy/2025/12/12/five-crypto-firms-step-closer-to-become-a-bank-including-ripple-circle-fidelity" rel="noopener noreferrer nofollow">CoinDesk: Ripple, Circle, BitGo Among Five Crypto Firms Set to Become Trust Banks</a> <a href="https://www.bankingdive.com/news/occ-national-trust-bank-charter-approve-circle-paxos-ripple-bitgo-gould-crypto/807799/" rel="noopener noreferrer nofollow">Banking Dive: OCC Green-Lights Circle, Ripple, Paxos for National Trust Bank Charters</a>

Warren goes after the OCC over Ripple and Coinbase bank charters

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