The Digital Chamber (TDC), an industry group representing over 250 crypto-related companies, formally rejected accusations from Senator Elizabeth Warren on Tuesday regarding the legality of federal bank charters granted to digital asset firms. In a letter addressed to Comptroller of the Currency Jonathan Gould, TDC CEO Cody Carbone argued that the senator misread federal statutes when she labeled recent approvals for firms like Ripple and Coinbase as “unlawful.”
The dispute stems from a letter Senator Elizabeth Warren sent last week to the Office of the Comptroller of the Currency (OCC). In that correspondence, she alleged that the agency violated the National Bank Act by granting national trust charters to Ripple, Coinbase, Circle, Paxos, Fidelity, and BitGo. She argued these firms do not follow the same standards as traditional banks and that their approvals were “improperly” granted, posing a risk to the financial system.
The Digital Chamber countered that characterizing these approvals as violations misrepresents the OCC’s longstanding authority to issue charters. Under these specific federal trust bank licenses, the firms would be permitted to hold customer assets but would remain prohibited from accepting cash deposits or issuing loans. This distinction is central to the industry’s defense against claims that they are operating outside the legal framework of the National Bank Act.
Regulatory friction over the GENIUS Act
A primary point of contention involves the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a law passed last summer to regulate the stablecoin market. Senator Elizabeth Warren claimed that crypto firms sought federal charters in response to this new law, but argued the GENIUS Act did not alter the existing National Bank Act. She suggested the OCC is overstepping by integrating these firms into the national banking fold.
CEO Cody Carbone described this view as “deeply incongruous” with recent legislative progress in Washington. He argued that it makes little sense for Congress to establish a new category of federally regulated stablecoin issuers while expecting the OCC to ignore its own chartering powers. The industry maintains that federal oversight through these charters is the most effective way to manage risks within the digital asset ecosystem.
This struggle for federal legitimacy comes as established players seek to stabilize their presence in the U.S. market. For instance, David Schwartz recently joined the XRPL Foundation as the industry pushes for more structured adoption. Providing a clear path to federal trust charters is seen by many in the sector as a bridge between traditional finance and digital assets.
Future of national trust charters for digital assets
Last year, the OCC granted conditional approval to Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos to operate as national trust banks. These firms are now waiting for final approvals that would solidify their standing. However, the political pushback from influential figures like Senator Elizabeth Warren highlights the ongoing tension between crypto-native firms and the traditional financial regulatory establishment.
The outcome of this debate will likely determine whether digital asset firms can continue to seek federal uniformity or if they will be pushed back toward a fragmented state-level licensing system. While the industry faces intense scrutiny, some sectors continue to see significant activity. Larger institutions are also deepening their involvement, such as when Italy’s largest bank exceeded $200M in Bitcoin exposure through recent investment vehicles.
Ultimately, the digital chamber’s letter serves as a defense of the OCC’s independence and its right to evolve alongside financial technology. By standing by the legality of the National Bank Act’s application to crypto firms, the TDC is betting that federal oversight will eventually prevail over political opposition. For now, the firms involved remain in a holding pattern, awaiting the final word from the OCC on their operational status.