Senator Elizabeth Warren alleges nine crypto firms received unlawful bank charters, undermining U.S. financial safeguards.
Sen. Elizabeth Warren accused the Office of the Comptroller of the Currency of illegally approving national trust bank charters for nine crypto firms, including Coinbase and Ripple. She argued these approvals bypass critical banking regulations, posing risks to financial stability.
The OCC, under the Trump administration, granted charters to firms like Circle, Paxos, and Fidelity Digital Assets. These entities operate with fewer regulatory constraints than traditional banks but offer limited services. Warren’s letter to OCC Comptroller Jonathan Gould demands clarification on the legal basis for these approvals.
Warren also raised concerns about potential political influence, citing a charter application linked to World Liberty Financial. The OCC has not yet responded to the allegations.