WASHINGTON — Crypto industry leaders are pushing back against criticism from Sen. Elizabeth Warren (D-MA) over the federal government’s recent approvals of bank charters for digital asset firms, with a leading trade association urging regulators to continue expanding oversight frameworks for stablecoin-related banking activity.
As the CU Daily reported, the dispute follows comments last week by Warren, who argued the Treasury Department’s recent approvals of national trust bank charters for cryptocurrency firms may violate U.S. banking laws and create broader risks to the financial system.
According to Yahoo Finance, the Digital Chamber sent a letter to Jonathan Gould, encouraging the Office of the Comptroller of the Currency to defend the approvals and continue building supervisory standards for trust banks involved in digital asset activities.
‘Defend These Charter Approvals’
“We strongly encourage the OCC to defend these charter approvals and continue developing clear supervisory expectations for trust banks,” the Digital Chamber wrote in the letter, as reported by Yahoo Finance.
Yahoo Finance reported that during the last year the OCC approved national trust bank charters tied to crypto-related activities for companies including Coinbase, Circle, Ripple, Paxos, BitGo, Fidelity Investments, Crypto.com, Stripe and Protego Trust Bank.
Warren argued the approvals allow crypto firms to use restrictive trust charters to carry out broader banking functions while avoiding requirements imposed on traditional banks, according to the report. She also warned the approach could pose systemic concerns for the banking sector.
About National Trusts
National trust companies generally provide fiduciary and custody services but do not accept customer deposits and are subject to a different regulatory framework than traditional depository institutions. Yahoo Finance reported that crypto firms receiving these approvals are seeking to support issuance, redemption and custody services tied to stablecoins and their reserve assets.
The debate comes after passage of the GENIUS Act, which established a federal framework for stablecoin issuance.
In its letter, the Digital Chamber argued congressional approval of the law supports the OCC’s authority to charter stablecoin-related entities.
‘Deeply Incongruous’
“It would be deeply incongruous for Congress, on an overwhelmingly bipartisan basis, to establish a new category of federally regulated stablecoin issuer while the OCC stood by and declined to exercise its chartering authority,” Digital Chamber CEO Cody Carbone wrote, according to Yahoo Finance.
The trade group also disputed claims that stablecoin payment and lending functions fall outside the authority of national trust companies, emphasizing that approved firms such as Coinbase and Ripple do not accept deposits insured by the Federal Deposit Insurance Corporation.
