US Regulators Advance Crypto Trust Charters Amid Growing Senate Scrutiny

Federal regulators are creating new pathways for digital asset firms to operate under United States rules, a regulatory movement that has drawn significant attention from congressional investigators. While the Office of the Comptroller of the Currency (OCC) continues to process applications for crypto companies, lawmakers are demanding transparency regarding the decision-making processes behind these new trust charters.

On November 9, Coinbase announced that its national trust company had received final approval to commence operations. This follows a preliminary conditional approval granted by the OCC in April. According to the company, the charter provides a consistent federal framework for its custody business. However, this development arrives during a period of heightened oversight, as legislators seek to understand how regulators justified these approvals and how crypto firms have managed their compliance obligations.

Senate scrutiny of the regulatory movement

Congressional interest in these charters has been persistent. In a letter dated May 18, Senator Elizabeth Warren challenged the OCC regarding at least nine crypto trust-charter approvals, including the conditional status previously granted to Coinbase. Senator Warren requested access to the original applications, the legal analyses used to justify the approvals, and documentation of any communications between OCC officials and the White House or members of the Trump family.

Further pressure was applied on November 5, when Senator Richard Blumenthal renewed demands for records from Binance, Tether, and two ventures linked to President Donald Trump. Senator Blumenthal has set a deadline of January 4, 2027, for these entities to provide the requested records voluntarily. He warned that his subcommittee is prepared to utilize additional measures to obtain the information if the companies fail to comply.

Federal regulators are advancing crypto trust charters while lawmakers investigate compliance and political connections.

Why it matters

The final clearance for Coinbase’s trust company marks a shift toward a more formalized federal structure for crypto custody services in the United States. For the industry, this represents an attempt to reconcile digital asset operations with traditional banking frameworks. For lawmakers, the focus remains on ensuring that these regulatory decisions are free from conflicts of interest and that crypto firms maintain rigorous compliance standards. The ongoing investigation into these approvals highlights a broader push by Congress to scrutinize the intersection of private crypto interests and federal regulatory authority, potentially setting a precedent for how future digital asset charters are evaluated.