--- title: "Elizabeth Warren Questions 'Effective Crypto Banks' By Coinbase, Ripple, Paxos" type: "News" locale: "en" url: "https://longbridge.com/en/news/286955602.md" description: "Senator Elizabeth Warren expressed concerns about the OCC granting banking privileges to nine cryptocurrency companies, including Coinbase and Ripple, without sufficient protections. She criticized the OCC for allowing these firms to bypass essential banking regulations, arguing that this undermines federal laws and poses risks to consumers and the financial system." datetime: "2026-05-19T18:27:22.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286955602.md) - [en](https://longbridge.com/en/news/286955602.md) - [zh-HK](https://longbridge.com/zh-HK/news/286955602.md) --- # Elizabeth Warren Questions 'Effective Crypto Banks' By Coinbase, Ripple, Paxos Senator **Elizabeth Warren** (D-Mass.) on Tuesday questioned the Office of the Comptroller of the Currency letting nine crypto firms operate as banks without proper safeguards. ### Warren Questions OCC Approval Of Nine Crypto Trust Charters Warren, the ranking Democrat on the Senate Banking Committee, sent a letter to OCC chief Jonathan Gould questioning approvals for trusts belonging to **Coinbase Global Inc.** (NASDAQ:COIN), Paxos, **Ripple** (CRYPTO: XRP), BitGo, and Fidelity Digital Asset Services. “These companies are effectively crypto banks that want to evade the fundamental safeguards and obligations that come with being a bank,” Warren wrote.  She argued the OCC’s decision to facilitate this regulatory arbitrage conflicts with federal law and poses serious risks to consumers and the banking system. The OCC has granted trust charters to crypto firms as the agency embraced President **Donald Trump**‘s agenda to elevate the crypto sector and establish a friendly regulatory environment. ### Trust Charters vs. Full-Service Bank Charters Warren pointed out the crypto companies are avoiding the process to be approved as highly regulated, full-service national banks and taking narrower trust-bank charters instead. She argued they look like crypto banks, not trust companies. The business plans include language suggesting the companies intend to engage in non-fiduciary custodial activities, facilitating payments and lending activities, and conducting stablecoin activities closely related to deposit-taking—all functions typically reserved for full banks. Warren’s letter challenged the separation between trust banks and commercial banks, arguing these firms are blurring the lines while avoiding the stricter oversight that comes with full banking charters. ### Warren Demands Records On Trump Family Communications Among her requests for information on the OCC process, Warren asked for records of any communications between the agency and President Trump or his family members on chartering firms. The Massachusetts lawmaker has repeatedly criticized the pending charter track for **World Liberty Financial Inc.**, the crypto company that Trump and his family hold a stake in.  Warren previously attempted to delay World Liberty’s bank charter over Trump ties. ### OCC Silent On Warren’s Accusations The OCC didn’t immediately respond to a request for comment on Warren’s letter.  The controversy comes as the crypto industry pushes for clearer regulatory frameworks while some lawmakers raise concerns about proper oversight. Warren’s challenge puts pressure on OCC chief **Jonathan Gould**, who has faced criticism from the senator in previous hearings over his approach to crypto bank charters.  The letter marks the latest escalation in Warren’s ongoing scrutiny of crypto’s integration into the traditional banking system. _Image: Shutterstock_ ### Related Stocks - [GBTC.US](https://longbridge.com/en/quote/GBTC.US.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) - [BTCS.US](https://longbridge.com/en/quote/BTCS.US.md) - [BKKT.US](https://longbridge.com/en/quote/BKKT.US.md) - [BTBT.US](https://longbridge.com/en/quote/BTBT.US.md) - [RIOT.US](https://longbridge.com/en/quote/RIOT.US.md) - [HUT.US](https://longbridge.com/en/quote/HUT.US.md) - [BTDR.US](https://longbridge.com/en/quote/BTDR.US.md) - [BITF.US](https://longbridge.com/en/quote/BITF.US.md) - [BMNR.US](https://longbridge.com/en/quote/BMNR.US.md) - [MARA.US](https://longbridge.com/en/quote/MARA.US.md) - [GLXY.US](https://longbridge.com/en/quote/GLXY.US.md) - [LTCN.US](https://longbridge.com/en/quote/LTCN.US.md) - [ETHE.US](https://longbridge.com/en/quote/ETHE.US.md) - [CORZ.US](https://longbridge.com/en/quote/CORZ.US.md) - [ETHW.US](https://longbridge.com/en/quote/ETHW.US.md) - [GSOL.US](https://longbridge.com/en/quote/GSOL.US.md) - [COIW.US](https://longbridge.com/en/quote/COIW.US.md) - [BTCO.US](https://longbridge.com/en/quote/BTCO.US.md) - [ETHV.US](https://longbridge.com/en/quote/ETHV.US.md) - [BITB.US](https://longbridge.com/en/quote/BITB.US.md) - [ARKB.US](https://longbridge.com/en/quote/ARKB.US.md) - [BLOK.US](https://longbridge.com/en/quote/BLOK.US.md) - [CETH.US](https://longbridge.com/en/quote/CETH.US.md) - [FETH.US](https://longbridge.com/en/quote/FETH.US.md) - [EZET.US](https://longbridge.com/en/quote/EZET.US.md) - [REKT.US](https://longbridge.com/en/quote/REKT.US.md) - [BLCN.US](https://longbridge.com/en/quote/BLCN.US.md) - [BRRR.US](https://longbridge.com/en/quote/BRRR.US.md) - [LMBO.US](https://longbridge.com/en/quote/LMBO.US.md) - [BTF.US](https://longbridge.com/en/quote/BTF.US.md) - [CONL.US](https://longbridge.com/en/quote/CONL.US.md) - [BITO.US](https://longbridge.com/en/quote/BITO.US.md) - [EETH.US](https://longbridge.com/en/quote/EETH.US.md) - [ETH.US](https://longbridge.com/en/quote/ETH.US.md) - [ETHA.US](https://longbridge.com/en/quote/ETHA.US.md) - [CONY.US](https://longbridge.com/en/quote/CONY.US.md) - [IBIT.US](https://longbridge.com/en/quote/IBIT.US.md) - [QETH.US](https://longbridge.com/en/quote/QETH.US.md) - [HODL.US](https://longbridge.com/en/quote/HODL.US.md) - [EZBC.US](https://longbridge.com/en/quote/EZBC.US.md) - [COIG.US](https://longbridge.com/en/quote/COIG.US.md) - [BTCW.US](https://longbridge.com/en/quote/BTCW.US.md) - [FBTC.US](https://longbridge.com/en/quote/FBTC.US.md) - [BTGO.US](https://longbridge.com/en/quote/BTGO.US.md) ## Related News & Research - [Bit Digital reports Q1 results](https://longbridge.com/en/news/286510331.md) - [Bakkt stock: can it really the sustain insider-driven momentum on Tuesday?](https://longbridge.com/en/news/286953729.md) - [Hut 8 Commits $16 Million to Expand Water Infrastructure in West Feliciana Parish | HUT Stock News](https://longbridge.com/en/news/286894933.md) - [Ripple Lands $200M Financing Deal From Neuberger To Expand Lending Capacity](https://longbridge.com/en/news/285970051.md) - [Minnesota signs law allowing banks, credit unions to offer crypto custody services](https://longbridge.com/en/news/286850962.md)