Senator Elizabeth Warren has accused the Office of the Comptroller of the Currency of violating federal banking law by approving trust charters for crypto firms. The Massachusetts Democrat argues the OCC is overstepping its authority and exposing consumers and the broader banking system to unnecessary risk.
The accusation
Warren’s charge centers on the OCC’s decision to grant special-purpose national trust charters to crypto companies. Those charters let firms custody digital assets and offer related services without state-level licensing. In Warren’s view, the comptroller’s office doesn’t have the legal power to write those approvals — and the products themselves are dangerous.
The senator didn’t specify which charters she’s targeting, but the OCC has approved several crypto trust companies since 2020. Critics have long argued the charters create a regulatory patchwork and let crypto firms sidestep tougher state oversight.
Why the trust charter fight matters
Trust charters are a big deal for crypto custodians. They allow a company to hold customer assets in a federally regulated structure, which can open doors with institutional clients and traditional banks. But the legal basis for those charters has been contested almost from the start. The OCC says the National Bank Act gives it the power to issue them. Warren says no.
This isn’t the first time the senator has gone after the OCC. She’s previously pressed the agency on bank partnerships with crypto firms and on its overall approach to digital assets. But this direct accusation of illegality raises the stakes.
Consumer risk argument
Warren’s central point is that crypto trust charters put consumers in harm’s way. Without robust state consumer-protection frameworks, she argues, customers have less recourse if something goes wrong — a custody error, a hack, an insolvency. The banking system also takes on indirect exposure if those crypto trusts interact with insured banks, she contends.
The OCC hasn’t publicly responded to the latest accusation. The agency has defended its chartering authority in court before, winning some battles and losing others. A federal judge in New York upheld the OCC’s power to issue the charters in 2022, but that ruling is being appealed.
The unresolved question is whether Warren’s push leads to new legislation or simply adds pressure on the OCC to pull back. She’s one of the most influential voices on banking regulation in Congress, and her focus on crypto isn’t fading.
