Crypto Firms Push Back on Senator Warren’s Challenge

The Digital Chamber, a leading crypto trade group, has urged the Treasury Department to support its recent decision to grant national trust bank charters to crypto companies. It asked the Office of the Comptroller of the Currency (OCC) to defend these approvals and keep working on clear rules for trust banks. Last year, the OCC gave national trust charters to firms such as Coinbase, Circle, Ripple, Paxos, BitGo, Fidelity, Crypto. com, Stripe and Protego. These charters let the companies run stablecoin operations—creating, redeeming and holding digital tokens that track the U. S. dollar. Senator Elizabeth Warren said the approvals might break banking law. She argued that letting crypto firms act like banks under lighter rules could threaten the U. S. financial system.The Digital Chamber counters that Congress already gave the OCC authority through the GENIUS Act, which legalized stablecoin issuance. The group says it would be inconsistent for Congress to create a new regulated category while the OCC refuses to use its chartering power. National trust companies are less tightly supervised than traditional banks. They typically manage assets for others but do not accept customer deposits insured by the FDIC. The crypto firms that received charters are not taking such deposits, so they argue their activities fit within the trust company model. They insist that the charters are legal and necessary for stablecoin growth. The debate highlights a clash between lawmakers concerned about oversight and industry players seeking regulatory clarity.