Crypto trust charters advance with federal approval amid heightened Senate oversight
Final approval granted to Coinbase's trust company while congressional members demand documentation regarding crypto companies' regulatory compliance and conflicts of interest.
US federal regulatory bodies are creating additional pathways for cryptocurrency firms to conduct operations within American regulatory frameworks, even as congressional oversight officials are requesting access to documentation supporting these authorizations. Congressional representatives are seeking information about the justifications regulators provided for new trust charter approvals, the manner in which cryptocurrency firms managed regulatory compliance obligations, and any interactions these companies maintained with individuals connected to the administration of President Donald Trump.
Coinbase made a public announcement on Nov. 9 that its national trust company had secured final authorization to commence operations. The preliminary conditional approval had been granted by the Office of the Comptroller of the Currency in April. According to the company's statement, the charter provides its custody operations with a uniform federal regulatory structure.
Congressional leaders had been raising questions about the ways in which federal regulatory agencies were employing their current authority to broaden the operational scope of cryptocurrency companies. Through a May 18 letter directed to the OCC, Sen. Elizabeth Warren contested no fewer than nine approvals of crypto trust charters, which included the earlier conditional authorization granted to Coinbase. Her request encompassed the submission applications, the legal reasoning underpinning the approvals, and any correspondence between OCC personnel and the White House or members of the Trump family.
Just four days prior to the announcement from Coinbase, Sen. Richard Blumenthal reiterated his requests for documentation from Binance, Tether and two business ventures with Trump connections. He established Jan. 4, 2027, as the deadline for these entities to provide the requested records on a voluntary basis and issued a warning that his subcommittee retained the authority to pursue alternative measures to secure the documents.