cryptobriefing.com
Senator Elizabeth Warren is back on her favorite soapbox, and the target hasn’t changed. The Massachusetts Democrat is accusing US federal regulators of rubber-stamping bank charters for cryptocurrency firms that she argues lack the risk management chops to deserve them.
Warren’s criticism centers on the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, two agencies she believes have been far too generous in welcoming digital asset companies into the regulated banking system.
The case Warren is building
Warren has specifically called out firms like Anchorage Digital Bank and Custodia Bank, arguing they lack proper risk controls and could introduce financial stability risks into the broader banking system. Anchorage Digital received a federal bank charter from the OCC in 2021, making it the first federally chartered digital asset bank in the US. Custodia Bank, founded by former Morgan Stanley executive Caitlin Long, has been in an extended battle with the Federal Reserve over its application for a master account.
The senator has been particularly vocal about approvals made during the Trump administration, which she characterizes as a period of regulatory permissiveness toward the crypto industry.
The ghost of crypto banking failures
Warren’s rhetorical arsenal includes the collapse of FTX in November 2022 and the subsequent liquidation of Silvergate Bank in early 2023. Silvergate, once the go-to banking partner for crypto firms, voluntarily wound down operations after suffering massive deposit outflows tied to the FTX implosion. Signature Bank, another crypto-friendly institution, was seized by regulators in March 2023 during the regional banking crisis.
The senator has positioned herself as the leading voice of opposition against pro-crypto legislation in the Senate. She has advocated for robust regulatory frameworks that would subject digital asset firms to the same scrutiny as traditional financial institutions before they gain access to banking privileges.
Warren has also raised alarms about crypto investments creeping into retirement plans, cautioning that workers’ savings could be jeopardized by the volatility inherent in digital assets. She has urged the SEC to implement strict regulations governing how and whether crypto can be offered in 401(k) plans and similar vehicles.