Crypto Bank Charter Battle Grows as OCC Clears Coinbase, Ripple, Bitgo and Others

National trust charters for crypto custody have become part of a wider regulatory dispute as U.S. Senator Elizabeth Warren pressed the OCC over approvals tied to Coinbase, Ripple, Bitgo, and other firms. Bitgo CEO Mike Belshe responded by defending fiduciary custody as a consumer protection model. He said custody is legally distinct from deposit-taking and that Bitgo does not take deposits, lend customer assets, or commingle client property. He described segregated, bankruptcy-remote accounts held under fiduciary duties. He contrasted this approach with failed crypto firms that accepted customer assets, mixed them with corporate funds, and left customers with unsecured claims. Warren’s scrutiny extended across multiple national trust charters connected to digital asset businesses.

"Bitgo CEO Mike Belshe countered that fiduciary custody separates client property from lending risks. Belshe argued that trust banks and fractional reserve banks should be classified under clearer terminology. The crypto bank charter debate widened after the Office of the Comptroller of the Currency (OCC) cleared national trust charters tied to Coinbase, Ripple, Bitgo, and other digital asset firms, drawing scrutiny from U.S. Senator Elizabeth Warren."

"His letter centered on the legal difference between custody and deposit-taking. Bitgo does not take deposits, lend customer assets, or commingle client property, Belshe explained. Instead, he said the company holds assets in segregated, bankruptcy-remote accounts under fiduciary duties. He contrasted that model with failed crypto firms that accepted customer assets, mixed them with corporate funds, and left customers with unsecured claims."

"The executive stressed: We do not take deposits. We do not lend customer assets. We do not commingle. Warren's scrutiny covered Ripple National Trust Bank, Paxos Trust Company LLC, First National Digital Currency Bank, Fidelity Digital Asset Services, Bitgo Trust Company, Foris DAX National Trust Bank, National Digital Trust Company, Bridge National Trust Bank, and Coinbase National"

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