Elizabeth Warren criticizes OCC over crypto bank charters

Senator Warren challenges the OCC’s approval of crypto bank charters, citing legal and financial risks, and calls for stricter oversight and transparency.

Senator Elizabeth Warren has raised significant concerns about the Office of the Comptroller of the Currency’s (OCC) approval of trust charters and banking licenses for at least nine cryptocurrency companies, including Coinbase, Paxos, Ripple, BitGo, and Fidelity Digital Asset Services. In letters to OCC chief Jonathan Gould, Warren questioned the legality of these approvals, arguing that the activities of these firms may exceed the limited scope permitted by law and potentially violate the National Bank Act. She contends that crypto companies are being allowed to operate as banks without meeting the essential safeguards and responsibilities required of traditional banks. Warren criticized the regulatory leniency during the Trump administration and demanded detailed explanations and access to nonpublic information about the OCC’s approval process. She warned that the current regulatory approach could undermine consumer protection and threaten the stability of the U.S. financial system.