US regulators are allowing more cryptocurrency companies to operate under US crypto trust charters, but the expansion is attracting growing scrutiny from lawmakers concerned about compliance standards, regulatory oversight, and potential political conflicts of interest.
The latest development came on November 9, when Coinbase announced that its national trust company had received final approval to begin operations. The Office of the Comptroller of the Currency (OCC) had previously granted the company preliminary conditional approval in April, providing a path toward operating its custody business under a federal regulatory framework.
However, the approval comes as Democratic senators intensify efforts to obtain records explaining how crypto companies secured these charters and whether regulators followed the appropriate legal procedures.
Coinbase Receives Final Approval for National Trust Company
Coinbase’s national trust company has received the final regulatory clearance needed to open, marking another step in the exchange’s efforts to expand its federally regulated operations.
The company previously received conditional approval from the OCC in April. Coinbase said the national trust charter would provide its custody business with a consistent federal framework, allowing it to operate under a clearer set of regulatory requirements. The development reflects a broader trend among cryptocurrency companies seeking national trust charters to expand their services within the US financial system.
However, the approvals have raised questions about whether some crypto businesses are using trust-company structures to provide services that more closely resemble traditional banking activities without facing the same regulatory obligations.
Elizabeth Warren Challenges OCC’s Crypto Charter Approvals
Senator Elizabeth Warren has been among the most vocal critics of the OCC’s approach to granting national trust charters to cryptocurrency companies.
In a May 18 letter to the agency, Warren questioned at least nine approvals, including Coinbase’s earlier conditional authorization. She requested copies of the companies’ applications, the legal analyses supporting the decisions, and communications between OCC officials and the White House or members of the Trump family.
Warren has argued that some crypto companies may be seeking to operate beyond the traditional scope of national trust companies. In an earlier letter, she warned that allowing these businesses to perform activities resembling those of full-service banks without equivalent safeguards could create risks for consumers and the wider financial system.
Her concerns also include the potential separation of banking and commerce, as well as the possibility that companies could use regulatory structures to avoid requirements imposed on traditional financial institutions.
Blumenthal Demands Records From Binance, Tether, and Trump-Linked Ventures
Congressional scrutiny is also extending beyond the trust-charter approval process.
Four days before Coinbase announced its final approval, Senator Richard Blumenthal renewed requests for documents from Binance, Tether, and two ventures linked to President Donald Trump.
Blumenthal gave the organizations until January 4, 2027, to voluntarily provide the requested records. He also warned that his subcommittee could pursue other measures to obtain the information if the companies did not comply. The requests form part of broader congressional efforts to examine cryptocurrency companies’ compliance practices and their relationships with individuals connected to the Trump administration.
Although the document requests are separate from Coinbase’s trust-company approval, they reflect the increasing attention lawmakers are paying to the connections between the crypto industry, federal regulators, and political figures.
Crypto Regulation Faces Growing Congressional Oversight
The developments highlight the tension between expanding access to federal regulatory frameworks for cryptocurrency businesses and ensuring that existing financial safeguards remain in place.
For crypto companies, national trust charters can provide a clearer regulatory structure for services such as digital asset custody. For lawmakers, however, the key question is whether the companies receiving these approvals are operating within the legal limits of their charters.
The latest congressional requests suggest scrutiny will not be limited to regulators’ decisions. Lawmakers are also examining how crypto businesses handle compliance and whether political relationships could have influenced the industry’s growing access to the US financial system.
Coinbase’s final approval represents progress for the company’s custody operations, but it also comes as the regulatory process itself faces increased scrutiny.
Do you think crypto firms should face the same regulatory requirements as traditional banks when expanding into custody and financial services?
