Senator Elizabeth Warren, Democrat of Massachusetts and the Senate’s most persistent institutional critic of digital assets, sent a formal letter to the Office of the Comptroller of the Currency in May 2026 challenging the legality of nine national trust bank charters approved for Ripple and other crypto-focused companies since December 2024.
Among them are Ripple, Circle, Paxos, BitGo, Coinbase and Fidelity Digital Assets, requiring complete charter files, internal legal analyzes and confidential application documents by June 1, 2026.
This is not just a senator conducting routine oversight of a federal regulatory agency. This is the most direct attempt yet to mount congressional pressure against the authority to create an independent agency.
This is to prevent crypto companies from obtaining federal banking infrastructure that would permanently integrate them into the U.S. financial system, and the industry’s invocation of “Operation Choke Point 3.0” is a deliberate and historically specific indictment rather than a rhetorical overreach.
$XRP sits right at horizontal channel support
this is the level that must be maintained to keep the structure intact
look at the reaction here, the bounce or pause tells us the next move pic.twitter.com/2kjlI2iLyp
– Don 🐂 (@DonWedge) May 28, 2026
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Operation Choke Point: The regulatory model, the 2023 precedent and why Warren’s letter applies to both
Operation Choke Point, launched by the Justice Department during the Obama administration in 2013, pressured banks to cut ties with certain legal industries labeled “high risk,” such as payday lenders and gun dealers, without legislative action. It was ended in 2017 amid criticism that it constituted regulation by harm reduction.
In early 2023, the crypto industry referred to a new wave of regulatory pressure as “Operation Choke Point 2.0,” following the closures of Silvergate Bank and Signature Bank, which primarily served the digital assets sector.
Interinstitutional guidelines have effectively limited crypto companies’ access to banking services, and this has been compounded by informal pressure from regulators such as the FDIC and Federal Reserve.
Warren’s May 2026 letter highlights a new phase, targeting the OCC’s power to grant banking charters to crypto companies. She argues that these chartered entities aim to circumvent traditional bank guarantees and claims that the OCC illegally granted these charters under the National Bank Act.
The OCC has defended its authority in court and has already won victories in cases involving special purpose charters, focusing on the distinction between accepting deposits and being structured as non-deposit taking trust banks.
The application of the Ripple OCC charter: what the trust structure offers and why incumbent operators perceive it as a threat
MADNESS: 🇺🇸The Digital Chamber just went to WAR with Elizabeth Warren to DEFEND Ripple’s $30,000,000,000,000+ federal banking charter. pic.twitter.com/Doaz8O3s3K
– STEPH IS CRYPTO (@Steph_iscrypto) May 28, 2026
Ripple has received conditional approval from the OCC for a national trust bank charter, distinguishing it from a commercial banking license. This charter provides federal preemption of state money transmitter licenses, thereby reducing operational costs by eliminating the need to comply with multiple state requirements. It also establishes a direct supervisory relationship with the OCC, ensuring uniform national standards.
However, the charter does not provide access to the Federal Reserve’s payment systems, which require a Fed master account. Currently, the Fed has suspended its decisions on Tier 3 master accounts, which include crypto trust banks, which could delay Ripple’s access to these payment rails until the end of 2026. This situation creates two institutional challenges for Ripple.
Ripple’s strategic pursuit of this charter appears aimed at reclassifying XRP and its products as federally supervised instruments. This would complicate future efforts by the SEC or Congress to classify XRP as an unregistered security. The SEC’s admissions regarding past enforcement actions have already changed the legal landscape, and an OCC trust charter could strengthen Ripple’s regulatory position.
Brad Garlinghouse, CEO of Ripple, framed the app as a challenge to traditional banks, questioning their fears of competition from a regulated crypto entity and arguing that such a move would eliminate the characterization of “unregulated crypto” that justifies exclusionary practices.
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Industry Reaction: Digital Chamber Mobilization and the Structural Argument Against Warren’s Position
🚨Digital Chamber DECLARES WAR on Warren — DEFENDS Ripple’s OCC Banking Charter 👀🇺🇸🔥
The BIGGEST blockchain trade group @DigitalChamber just fired back at Elizabeth Warren over crypto banking charters. 😳
The Digital Chamber OFFICIALLY sent a LETTER to @USOCC DEFENDING crypto… pic.twitter.com/rE07g2RpeJ
– Diane (@InvestWithD) May 27, 2026
The Digital Chamber, a cryptocurrency advocacy group with more than 250 members, submitted a letter to OCC Comptroller Jonathan Gould defending the agency’s awarding authority following Elizabeth Warren’s comments.
CEO Cody Carbone argued that Warren’s interpretation of the banking law disregards the OCC’s established authority to issue trust bank charters. He pointed out that the GENIUS Act of 2025 created a federal framework for stablecoin issuers, which includes companies seeking OCC charters.
Carbone stressed that refusing these charters would harm the coherence of the legislation. Opposition from traditional financial institutions to crypto legislation suggests that Warren’s position aligns with established banking interests.
The industry mobilization aims to create a documented case to complicate any future decision by the OCC to rescind approvals under political pressure, thereby increasing reputational and litigation risks for the regulator.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article is intended to provide accurate and current information, but should not be considered financial or investment advice. Because market conditions can change quickly, we encourage you to verify the information for yourself and consult a professional before making any decisions based on this content.
Daniel Frances is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. Hailing from crypto since 2017, Daniel leverages his experience in on-chain analytics to write evidence-based reports and in-depth guides. He holds certifications from the Blockchain Council and is dedicated to providing “insight gain” that overcomes market hype to find real utility for blockchain.
