A sitting U.S. Senator is once again challenging federal regulators over one of the most significant banking approvals in crypto history. The Office of the Comptroller of the Currency granted Ripple conditional approval to operate as a National Trust Bank in December 2025.
The move gave Ripple federal oversight for digital asset custody services and positioned its RLUSD stablecoin for further regulatory recognition. For the XRP community, it was a landmark step forward. Senator Elizabeth Warren sees it differently.
On May 18, Warren sent a formal letter to OCC Comptroller Jonathan Gould, arguing the approvals violated the National Bank Act and calling them outright illegal. Ripple was not the only target. The OCC has approved national trust banking charter applications for nine companies and their affiliates, including Coinbase, Circle, and others.
🔔 JUST IN: Infamous U.S Senator Elizabeth Warren says the OCC’s approval allowing #Ripple to operate as a National Trust Bank is “illegal.”
This is a serious problem to have people so incompetent in a Senator position. She is actually ridiculous and needs to go immediately. pic.twitter.com/mxC0OH0GaS
— Crypto Dyl News (@cryptodylnews) May 23, 2026
Warren’s Core Argument
Warren said these companies look more like crypto banks than trust companies. Her position is that the OCC overstepped its authority by approving firms whose business plans go beyond traditional fiduciary activities. The legal controversy centers on what national trust banks are permitted to do.
The National Bank Act allows national banks to limit their activities to the operations of a trust company. Traditionally, this meant fiduciary activities like holding and managing assets on another’s behalf. Warren also argued these approvals are serious risks to the safety and soundness of the U.S. banking system.
She set a June 1, 2026, deadline for the OCC to produce charter records and any Trump family communications tied to the approvals.
A Pattern of Opposition
This move fits a well-established pattern. Warren has spent years positioning herself as one of crypto’s most vocal critics in Congress. Ahead of the Senate Banking Committee’s markup of the Digital Asset Market Clarity Act earlier this month, Warren filed 44 proposed amendments to the CLARITY Act alone.
One amendment targeted the bill’s grandfather clause, which would automatically classify certain crypto assets as commodities if they already back a U.S.-listed spot ETF or ETP by January 1, 2026. Warren aimed to remove that shortcut entirely.
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Another proposal aimed to block the U.S. Federal Reserve from granting master accounts to crypto firms, with Ripple among the companies directly affected. Despite her efforts, the CLARITY Act cleared the Senate Banking Committee, with Warren’s amendment to bar digital assets from retirement accounts failing in committee.
Where Things Stand
Ripple holds a conditional OCC approval, and the CLARITY Act is advancing toward a full Senate vote. Warren’s letter demands answers by June 1, but her amendments have already failed to gain traction. The regulatory path for Ripple and XRP continues to move forward.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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