Jonathan Gould, comptroller of the Currency, was accused by U.S. Senator Elizabeth Warren of “improperly” permitting national trust charters to cryptocurrency companies that such grants may violate under the National Bank Act.
In a letter dated May 18, 2025, Senator Warren noted that Gould had approved at least nine national trust charters for crypto companies whose activities may surpass the legal boundaries of permitted activities. Senator Warren warned that these companies are likely cryptocurrency banks but seeks to bypass the security and responsibilities required of traditional banks.
Additionally, Senator Warren underscored few current permitted approvals, such as digital asset firms like Ripple, Circle, Paxos, Fidelity, BitGo, and Coinbase. The U.S. Office of Comptroller of the Currency permitted conditional approvals to a preliminary set of five firms that filed for a federal charter to become trust banks.
Furthermore, Circle’s conditionally approved application for a national trust bank charter is associated with a new entity such as First National Digital Currency Bank. Gould has permitted conditional approval to Stripe subsidiary Bridge, Coinbase, Crypto.com, and others, while processing applications from other digital asset firms.
On the contrary, the charters do not enable these firms to take FDIC-insured deposits or involve in traditional commercial lending; they may back firms operating stablecoin businesses under the GENIUS Act regulation enacted in previous summer.
The American Bankers Association, representing traditional banking interest, has called the OCC to lighten up on permitting crypto firms national bank charters, stating unresolved risks in receivership protocols and insufficient federal oversight.
Overall, Senator Warren highlighted that permitting these charters to crypto firms focused on market inefficiency trading could lead to serious risks to consumers, the banking system, and the traditional separation between banking and commerce. She also added that bona fide fiduciary trust activities must be the primary function of trust firms, cautioning that most of these crypto firms are not mainly focused on such activities.
