Coinbase said on November 9 that its national trust company has received final regulatory clearance to begin operations, completing a path that started with preliminary conditional approval from the Office of the Comptroller of the Currency (OCC) in April. The approval expands the exchange's federally regulated footprint and comes as Democratic senators intensify efforts to obtain records on how cryptocurrency companies secured such charters.
A federal framework for custody
According to the company, the national trust charter gives its custody business a consistent federal framework and a clearer set of regulatory requirements. The development fits a broader trend of crypto companies seeking national trust charters as a way to expand their services within the US financial system.
The approvals have also raised questions about whether some crypto businesses are using trust-company structures to offer services that more closely resemble traditional banking activities without facing the same regulatory obligations.
Warren challenges the approvals
Senator Elizabeth Warren has been among the most vocal critics of the OCC's approach to granting national trust charters to cryptocurrency companies.
In a May 18 letter to the agency, Warren questioned at least nine approvals, including Coinbase's earlier conditional authorization. She requested copies of the companies' applications, the legal analyses supporting the decisions, and communications between OCC officials and the White House or members of the Trump family.
Warren has argued that some crypto companies may be seeking to operate beyond the traditional scope of national trust companies. In an earlier letter, she warned that allowing these businesses to perform activities resembling those of full-service banks without equivalent safeguards could create risks for consumers and the wider financial system.
Her concerns also include the potential separation of banking and commerce, as well as the possibility that companies could use regulatory structures to avoid requirements imposed on traditional financial institutions.
Blumenthal renews document requests
Congressional scrutiny is extending beyond the trust-charter approval process. Four days before Coinbase announced its final approval, Senator Richard Blumenthal renewed requests for documents from Binance, Tether, and two ventures linked to President Donald Trump.
Blumenthal gave the organizations until January 4, 2027, to voluntarily provide the requested records, and warned that his subcommittee could pursue other measures to obtain the information if the companies did not comply. The requests form part of broader congressional efforts to examine cryptocurrency companies' compliance practices and their relationships with individuals connected to the Trump administration.
Although the document requests are separate from Coinbase's trust-company approval, they reflect the increasing attention lawmakers are paying to the connections between the crypto industry, federal regulators and political figures.
Tension over expanded access
The developments highlight the tension between widening access to federal regulatory frameworks for cryptocurrency businesses and ensuring that existing financial safeguards remain in place.
For crypto companies, national trust charters can provide a clearer regulatory structure for services such as digital asset custody. For lawmakers, the key question is whether the companies receiving these approvals are operating within the legal limits of their charters.
The latest congressional requests suggest scrutiny will not be limited to regulators' decisions. Lawmakers are also examining how crypto businesses handle compliance and whether political relationships could have influenced the industry's growing access to the US financial system.
Coinbase's final approval represents progress for the company's custody operations, but it also arrives as the regulatory process itself faces increased scrutiny.
