A formal letter dated May 18, 2026 targets nine crypto-related national trust charters approved by the OCC, including Coinbase and Ripple. The letter argues the OCC violated the National Bank Act by approving charters for firms whose business plans include activities beyond fiduciary trust functions. National trust companies are described as limited to fiduciary roles such as trustee, executor, administrator, or guardian, and as prohibited from accepting deposits or making loans. The letter states these charters allow crypto firms to operate without safeguards and obligations that apply to full-service national banks, including federal deposit insurance, Community Reinvestment Act requirements, and Bank Holding Company Act restrictions. A June 1, 2026 deadline is set for charter records and related communications.
"Sen. Warren sent OCC Comptroller Gould a formal letter on May 18, 2026, targeting 9 crypto trust charters including Coinbase and Ripple. Warren argues the OCC violated the National Bank Act by approving firms conducting non-fiduciary activities like staking, lending, and stablecoin issuance. The senator set a June 1, 2026, deadline for the OCC to produce charter records and any Trump family communications tied to the approvals."
"Under federal law, national trust companies are limited to fiduciary activities such as acting as trustee, executor, administrator, or guardian. They cannot accept deposits or make loans, and they operate without the federal deposit insurance, Community Reinvestment Act obligations, and Bank Holding Company Act restrictions that apply to full-service national banks. Warren insists the OCC has ignored that legal boundary."
"Since December 2025, you have approved at least nine national trust charters for crypto companies that intend to engage in activities that appear to go far beyond the narrow set of activities permitted by law, she wrote to Gould. These companies are effectively crypto banks that want to evade the fundamental safeguards and obligations that come with being a bank."
"The letter identifies the nine approved firms: Ripple National Trust Bank, Paxos Trust Company, First National Digital Currency Bank (linked to Circle), Fidelity Digital Asset Services, Bitgo Bank and Trust N.A., Foris DAX National Trust Bank (a Crypto.com affiliate), National Digital Trust Company (Protego), Bridge National Trust Bank (Stripe-related), and Coinbase National Trust Company."
#cryptocurrency-regulation #occ-oversight #national-bank-act #national-trust-companies #banking-compliance
Read at news.bitcoin.com
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