Warren Questions OCC Over Crypto Bank Charters

Sen. Elizabeth Warren on May 19 sent a letter to the Office of the Comptroller of the Currency asking the agency to explain the standards it is using to approve crypto-related national bank charters that could allow federally licensed stablecoin issuance while Congress considers the GENIUS Act.

In the letter, Warren urged the OCC to add scrutiny or pause approvals until lawmakers finalize a federal stablecoin framework.

Warren identified three specific concerns. She raised systemic risk if chartered crypto banks do not meet reserve quality, capital adequacy and liquidity standards comparable to traditional banks. She flagged consumer protection gaps because stablecoin balances held at a chartered crypto institution would not receive FDIC deposit insurance in the same way as bank deposits. She also questioned anti-money-laundering parity, saying crypto-native institutions seeking charters should face full Bank Secrecy Act examinations like incumbent banks.

The OCC grants national bank and federal savings charters, which carry federal preemption over state licensing requirements. Under prior OCC guidance and leadership, the agency permitted certain crypto activities, including holding stablecoin reserves and participating in blockchain payment networks. The current OCC has continued to process crypto-related charter applications while the GENIUS Act moves through Congress.

The GENIUS Act would create a federal licensing regime for payment stablecoins with requirements on reserve holdings, a prohibition on offering yield and specified AML standards. In her letter, Warren argued that approving charters before Congress completes its work could create a parallel regulatory path that bypasses state-by-state licensing and parts of the proposed federal framework.

The letter asks the OCC to clarify how it evaluates charter applicants and to justify any approvals issued before legislative standards are set.

The correspondence increases political pressure on the OCC. Firms seeking national charters may face additional review, potential delays and ongoing congressional oversight of their compliance controls and consumer protections. Community banks have raised concerns that chartered crypto firms with different regulatory obligations could gain cost advantages that attract deposits away from smaller lenders.

Regulated institutions and stablecoin issuers now face two potential tracks: state money-transmitter licensing or a federal charter route that could preempt state rules. The OCC has not announced a pause in processing crypto-related charter applications.