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Operation Choke Point 3.0? Crypto Industry Mobilizes Against Warren Over <a href="https://tech-oracle.com/xrp-usd/">Ripple</a> Charter

In May 2026, Senator Elizabeth Warren, a Democrat from Massachusetts known for her strong criticism of cryptocurrencies, officially questioned the legal basis of nine national trust bank charters. These charters were granted to Ripple and other companies focused on crypto beginning in December 2024.

Companies like Ripple, Circle, Paxos, BitGo, Coinbase, and Fidelity Digital Assets have been asked to submit complete charter documents, internal legal reviews, and confidential application information by June 1, 2026.

This isn’t just a senator doing a standard check on a government agency. It’s the clearest effort so far to use congressional power to challenge an independent agency’s ability to operate.

The goal is to stop cryptocurrency companies from fully connecting to the traditional US banking system. Their claim that this is a repeat of “Operation Choke Point 3.0” isn’t just hyperbole; it’s a specific reference to past actions.

$XRP is sitting right at the support of the horizontal channel

this is the level that has to hold to keep the structure intact

watch the reaction here, the bounce or the break tells us the next move

— Don 🐂 (@DonWedge) May 28, 2026

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Operation Choke Point: The Regulatory Pattern, the 2023 Precedent, and Why Warren’s Letter Maps onto Both

Operation Choke Point was a program started by the Department of Justice in 2013, during the Obama administration, that encouraged banks to stop doing business with certain legal industries considered “high-risk,” like payday loan companies and gun dealers. The program didn’t involve any new laws, and it ended in 2017 after facing criticism for effectively regulating these industries by discouraging banks from working with them.

Following the failures of Silvergate and Signature Bank – both key banks for crypto companies – the cryptocurrency industry began to worry about increased government regulation, calling it “Operation Choke Point 2.0” in early 2023.

Government agencies essentially cut off many crypto companies from traditional banking services. This was made worse by unwritten pressure from regulators like the FDIC and the Federal Reserve.

In a May 2026 letter, Senator Warren focused on the Office of the Comptroller of the Currency’s (OCC) authority to approve bank charters for cryptocurrency companies. She believes these companies are trying to avoid standard banking regulations and contends the OCC improperly issued these charters under federal law.

The OCC has successfully argued its legal authority in court before, particularly in cases involving special-purpose charters. These wins centered on the difference between banks that accept deposits and those structured as trust banks that don’t.

The Ripple OCC Charter Application: What the Trust Structure Provides and Why Incumbents Perceive It as a Threat

A major clash has erupted between the Digital Chamber of Commerce and Senator Elizabeth Warren over Ripple’s application for a federal bank charter, which could be worth over $30 trillion. The Digital Chamber is strongly defending Ripple’s right to pursue this charter.

— STEPH IS CRYPTO (@Steph_iscrypto) May 28, 2026

Ripple has conditionally been approved for a national trust bank charter by the OCC, which is different than a typical commercial banking license. This approval means Ripple won’t need to comply with individual state money-transmitter licenses, lowering its operating costs. Instead, it will be directly overseen by the OCC, ensuring consistent national standards are met.

Despite receiving a banking charter, Ripple still needs access to the Federal Reserve’s payment systems, which requires a special Fed account. The Fed is currently holding off on approving these accounts for companies like crypto trust banks, meaning Ripple might not be able to fully connect to these payment networks until late 2026. This creates two significant hurdles for Ripple as it grows.

Ripple appears to be seeking this special license to have XRP and its related services recognized as being under federal oversight. This move would make it harder for the SEC or Congress to later declare XRP an unregistered security. Because the SEC has already acknowledged some issues with past enforcement actions, getting this trust charter could further strengthen Ripple’s position with regulators.

Ripple CEO Brad Garlinghouse presented their application as a way to push back against traditional banks. He suggested their concerns about competition from a crypto company operating within the rules don’t make sense, and that approving Ripple would remove the argument banks use to justify excluding crypto from the financial system.

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Industry Reaction: The Digital Chamber’s Mobilization and the Structural Argument Against Warren’s Position

🚨Digital Chamber DECLARES WAR On Warren — DEFENDS Ripple’s OCC Bank Charter 👀🇺🇸🔥

The Digital Chamber of Commerce, a leading blockchain industry group, has publicly responded to criticism from Elizabeth Warren regarding the granting of bank charters to cryptocurrency companies. 😳

The Digital Chamber OFFICIALLY sent a LETTER to the @USOCC DEFENDING crypto…

— Diana (@InvestWithD) May 27, 2026

Following Senator Elizabeth Warren’s recent statements, the Digital Chamber, a group representing over 250 companies in the crypto industry, sent a letter to Jonathan Gould, the head of the Office of the Comptroller of the Currency, to support the agency’s ability to grant bank charters.

As I understand it, CEO Cody Carbone believes Senator Warren’s view of banking law doesn’t accurately reflect the OCC’s authority to grant trust bank charters. He’s pointed out that the 2025 GENIUS Act actually laid out a national standard for stablecoin companies, and that includes those applying for charters through the OCC.

Carbone argued that rejecting these charters would weaken the overall purpose of the new law. The fact that traditional banks are resisting crypto regulations indicates that Senator Warren’s position actually supports the interests of established financial institutions.

The industry is working to build a clear record of approvals to make it harder for the OCC to reverse those decisions due to political influence. This is intended to increase the risks of legal challenges and damage the regulator’s reputation.

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2026-05-28 18:25