The Digital Chamber defends the OCC’s crypto bank charters as legally sound, marking a step towards federal oversight of digital assets.
Industry groups and lawmakers clash over the OCC’s authority to charter crypto-focused firms, sparking debate on federal regulation.
The dispute reflects broader efforts to establish a federal framework for digital asset regulation, including stablecoin issuers.
The Digital Chamber, an American advocacy group, has pushed back against criticism from Senator Elizabeth Warren over the Office of the Comptroller of the Currency’s recent approval of national trust bank charters for crypto-focused firms, arguing the agency acted within its legal authority and followed established regulatory procedures.
In a May 26 letter addressed to Comptroller Jonathan Gould, the blockchain trade association said the OCC’s approvals for crypto-native trust banks were “legally sound” and represented a step toward bringing digital asset activity under a federal supervisory framework.
The response follows a May 18 letter from Warren, who questioned whether the OCC had exceeded its authority by approving charters tied to digital asset businesses and stablecoin activity.
Industry group rejects Warren’s legal arguments
The Digital Chamber said Warren’s criticism mischaracterized both the National Bank Act and the OCC’s chartering powers. According to the group, federal law explicitly allows the OCC to charter companies operating as trust banks, including firms engaged in custody and related fiduciary activities.
The organization argued that the applicants approved by the OCC underwent extensive reviews covering compliance controls, cybersecurity systems, consumer protection procedures, and risk management standards before receiving charters or conditional approvals.
The letter also said Warren failed to provide statutory or judicial support for claims that the OCC’s approvals violated banking law. “The record does not support the suggestion that these approvals were made carelessly or unlawfully,” the Digital Chamber wrote.
Debate centers on stablecoins and federal oversight
The trade association linked the OCC’s decisions to the recently enacted GENIUS Act, which established a federal framework for payment stablecoin issuers. According to the letter, Congress created the legislation to support federally supervised stablecoin operations, making it reasonable for the OCC to extend charter approvals to qualifying digital asset firms.
The group also argued that crypto companies seeking national trust bank charters are voluntarily placing themselves under stricter federal oversight rather than attempting to avoid regulation.
National trust banks differ from traditional commercial banks because they generally do not accept insured deposits or engage in lending activities. The Digital Chamber said this structure limits broader systemic banking risks often associated with large financial institutions.
Concerns over banking risks disputed
Warren’s earlier criticism raised concerns that crypto-related trust banks could introduce risks to the financial system or weaken regulatory safeguards.
The Digital Chamber disputed that view, saying OCC-supervised trust banks already operate within a long-standing regulatory framework used for fiduciary and custody institutions. The letter cited OCC data showing uninsured national trust banks collectively managed roughly $7 trillion in assets under administration as of the end of 2025.
The association also argued that bringing crypto custody and stablecoin businesses into a regulated federal structure could improve oversight consistency across the sector.
Crypto firms seek broader legitimacy
The debate reflects a wider policy divide in Washington over how digital asset firms should integrate into the U.S. financial system.
Supporters of the OCC approvals argue that federal charters could provide clearer compliance standards for crypto custody, tokenization, and stablecoin operations. Critics, including Warren, have warned that expanding federal banking access to crypto firms may expose the financial system to new operational and regulatory risks.
The Digital Chamber said it plans to continue working with regulators and lawmakers on digital asset policy, while urging the OCC to maintain its support for federally supervised crypto trust banks.
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