Senator Warren Reportedly Slams OCC Crypto Bank Approvals For Ripple, Coinbase, Paxos, And Trump’s World Liberty Financial

• Senator Elizabeth Warren reportedly questioned the Office of the Comptroller of the Currency approved crypto trust charters tied to crypto firms, Bloomberg reported on Tuesday.
• Warren said the firms appear to be engaged in activities including trading, payments, lending and stablecoin issuance beyond what national trust banks typically allow.
• The criticism comes as the Office of the Comptroller of the Currency broadens trust-bank activity rules and faces opposition from banking groups over crypto charter approvals.

Senator Elizabeth Warren (D-MS) has reportedly pressed the Office of the Comptroller of the Currency (OCC) on Tuesday over its recent approvals of crypto-linked national trust bank charters, arguing that several firms may not qualify under federal banking law.

According to a Bloomberg report, Warren questioned OCC head Jonathan Gould about at least nine charter approvals issued to crypto affiliates, including Ripple (XRP), Coinbase (COIN) and Paxos (USDP), which also operates Paxos Gold (PAXG).

She stated that the firms appear to offer services beyond activities permitted for national trust banks under the National Bank Act, including crypto trading, payments, lending and stablecoin issuance.

Warren wrote that allowing these trust companies to "act like full-service national banks, while evading the suite of restrictions, safeguards, and obligations" would "pose clear risks to consumers, create conflicts of interest, undermine the separation of banking and commerce, and threaten the safety and soundness of the banking system.” She also flagged World Liberty Financial (WLFI), the Trump family-linked crypto venture, which has a pending trust-charter application still under OCC review. 

Warren previously raised alarms about the OCC's swift approval of politically connected crypto bank Erebor, signaling her broader concerns about the charter approval process. 

OCC Rules Shift Alongside Washington’s Crypto Push

The OCC's approval reflected a regulatory shift under the Trump administration. The passage of the GENIUS Act last summer, which established a stablecoin regulatory framework, marked a turning point, with regulators adopting an approach to digital assets. 

Earlier this year, the OCC finalized a new rule clarifying that national trust institutions may engage in "non-fiduciary activities.” The OCC argued the National Bank Act never prohibited such activities, though critics say this represents a broadened reading of trust bank powers.
However, earlier this year the Independent Community Bankers of America (ICBA) 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.

Coinbase’s price was down by 0.1% in early morning trade. On Stocktwits, the retail sentiment around COIN moved to ‘neutral’ from the ‘bullish’ zone, while chatter stayed in the ‘high’ levels over the past day.

Crypto Firms Seek Federal Banking Structures

Crypto companies have pursued national trust charters as they expand further into payments, custody and stablecoin-related services in the U.S. The charters allow firms to operate under federal supervision across state lines, though they do not allow institutions to take federally insured deposits like commercial banks.

The approvals have accelerated integration of crypto-native firms into traditional U.S. financial infrastructure, as lawmakers debate whether the framework adequately protects consumers and financial stability.

Read also: Cathie Wood's Ark Invest Scoops Up More BLSH Stock After It Hits One-Month Low

For updates and corrections, email newsroom[at]stocktwits[dot]com.