TLDR

• Elizabeth Warren questioned the OCC over its approval of crypto-focused trust bank charters.
• She argued that these firms operate like banks while avoiding strict federal banking regulations.
• Warren stated that the approvals could pose risks to consumers and the financial system.
• She requested records of communications between the OCC and Donald Trump or his family.
• The OCC granted charters to companies including Coinbase, Paxos, Ripple, BitGo, and Fidelity Digital Asset Services.

U.S. Senator Elizabeth Warren has pressed a federal banking regulator over approvals granted to crypto-focused institutions. She questioned whether these firms met legal standards and raised concerns about risks to the financial system. Her request targets decisions by the Office of the Comptroller of the Currency regarding trust charters for digital asset companies.

The development follows recent approvals issued by the Office of the Comptroller of the Currency. These approvals allowed several crypto firms to operate under national trust bank charters. Warren sent a formal letter seeking detailed explanations and supporting records from the regulator.

Elizabeth Warren Questions Crypto Charter Approvals

Warren stated that the approved firms operate like banks but avoid strict regulatory requirements. She argued that the agency enabled companies to bypass safeguards applied to full-service national banks. She wrote, “These companies are effectively crypto banks that want to evade fundamental safeguards.”

She also claimed that the approvals conflict with federal banking law and established oversight practices. She warned that the decisions could affect consumers and overall financial stability. She added that the process may weaken the separation between banking and commerce.

Warren’s letter specifically requested documents related to communications between regulators and executive officials. She asked for any records involving President Donald Trump or his family members. She also sought details on internal review processes for the charter decisions.

She noted that several companies received trust charters instead of pursuing full national bank licenses. She argued that this route allows firms to avoid stricter capital and compliance standards. She said the firms “look like crypto banks, not trust companies.”

Regulator Approvals Include Major Crypto Firms

The Office of the Comptroller of the Currency granted trust charters to companies such as Coinbase and Paxos. It also approved applications linked to Ripple, BitGo, and Fidelity Digital Asset Services. These firms now operate under limited-purpose banking frameworks.

Warren argued that business plans from these firms suggest broader financial activities. She said the plans include custodial services, payment facilitation, and lending functions. She also pointed to stablecoin operations that resemble deposit-taking activities.

She stated that these activities align more closely with traditional banking services. She argued that such operations should require full regulatory approval under national bank standards. She emphasized that regulators must ensure compliance with existing federal laws.

The OCC did not issue an immediate response to Warren’s request for comment. However, the agency previously supported efforts to create a crypto-friendly regulatory environment. These actions aligned with policies introduced during Trump’s administration.

Concerns Extend to Trump-linked Crypto Venture

Warren also referenced a pending charter application involving World Liberty Financial Inc. The company has financial ties to Trump and his family members. She raised concerns about potential conflicts of interest in the review process.

She requested further clarity on how the OCC evaluates applications tied to politically connected entities. She asked whether standard review procedures applied equally in such cases. She also sought timelines for pending charter decisions.

Her letter emphasized transparency and accountability in regulatory decisions. She urged the OCC to provide complete records and justification for its actions. The agency has yet to disclose the requested materials or provide a formal reply.

London’s financial policy circle is signaling a sharper focus on digital money, with senior Bank of England officials outlining how tokenization could drive lower costs, faster settlement, and greater competition in payments and markets. The remarks come as policymakers pursue a framework that nurtures innovation while preserving financial stability, and as the BoE signals changes to the settlement backbone that could underpin a broader digital-asset ecosystem.

Deputy Governor Sarah Breeden, speaking during City Week in London, described tokenization—the digital representation of assets and money on distributed ledgers—as a conduit to more efficient payments and markets, provided that trust and interoperability are embedded in the design. While central bank money remains the anchor of the monetary system, Breeden stressed that private-sector innovations such as tokenized deposits and regulated stablecoins are increasingly visible, and that policy must accommodate these developments without undermining resilience.

Breeden articulated a balanced vision: alongside traditional bank deposits, the public should be able to transact with tokenized bank deposits, regulated stablecoins, and potentially a retail central bank digital currency (CBDC). In her view, market competition across a broader technology and business-model spectrum should translate into lower costs and enhanced user functionality. The Bank’s transcript of the speech frames tokenization as a path to modernization, not a wholesale replacement of existing money or payment rails.

The BoE has signaled that its thinking is being refined through close collaboration with industry, government, and regulators to craft a framework that supports innovation while safeguarding financial stability. This stance aligns with ongoing industry engagement as policymakers reassess the UK’s stance on digital assets and the role of private money within an anchored monetary system.

Key takeaways

• Tokenization as a catalyst for efficiency: Representing assets and money on digital ledgers could improve payment efficiency and market functionality, contingent on robust trust, interoperability, and risk controls.
• Central bank money remains the anchor: The BoE emphasizes that sovereign money will continue to underpin the monetary system even as tokenized deposits and regulated stablecoins gain traction.
• Settlement infrastructure evolving toward near-continuous operation: The BoE proposed extending the operating hours of RTGS/CHAPS to near 24/7 to support cross-border payments and securities settlement amid growing tokenization activity.
• Regulatory recalibration for stablecoins and digital assets: The Bank is reconsidering its approach to pound-denominated stablecoins, with a focus on reducing friction for early adopters while maintaining safeguards against financial instability.

Tokenization, interoperability and the anchor role of central bank money

The Bank of England’s policy direction treats tokenization as a potential enabler of more efficient and resilient financial markets, not as an immediate replacement for established systems. By representing real assets and public money on auditable digital ledgers, tokenization could streamline settlement cycles, reduce counterparty risk, and broaden access to payment services. However, officials insist that any transition must preserve trust in the monetary framework and ensure interoperability across platforms and providers.

Breeden underscored a pragmatic stance: central bank money remains the universal reference point, while private innovations—such as tokenized deposits and regulated stablecoins—could coexist with traditional products. The policy objective is clear, she said: unlock higher competition, deploy a wider set of technologies, and deliver better outcomes for users without compromising safety or financial stability. The emphasis on interoperability signals a preference for cohesive standards and governance that can survive cross-border and cross-platform interactions.

From a regulatory perspective, the emphasis on a coordinated framework has implications for banks, payment firms, and digital-asset counterparties. Institutions seeking to deploy tokenized products would need to demonstrate robust risk management, reliable reserve backing where applicable, and clear compliance with AML/KYC requirements. The BoE’s approach appears to favor an openness that invites innovation while maintaining robust oversight—a stance that resonates with global policy debates on digital money and regulatory harmonization.

According to Cointelegraph reporting linked to the Bank of England’s public communications, policymakers are engaging with industry to align innovation with safety standards. The takeaway for compliance teams and financial institutions is that tokenization is moving from pilot-test scenarios toward practical deployment, but only within a carefully designed regulatory envelope that preserves monetary stability and consumer protection.

Extending settlement hours: modernizing core settlement services

In a parallel move to modernize the settlement framework, the BoE proposed extending the operating hours of its core settlement infrastructure, with near-continuous availability. The plan aims to better accommodate tokenized assets and evolving digital-asset workflows, supporting more efficient cross-border payments and the settlement of securities as technology-enabled assets become more prevalent.

The proposal comes after remarks from Breeden that the monetary framework should not only accommodate innovation but actively support it. By offering longer settlement windows, the BoE intends to reduce friction for users and for industry participants operating in a rapidly digitizing market environment. The change would entail thoughtful risk controls and governance to ensure resilience during extended operations and to maintain the integrity of the settlement rails that underpin the UK financial system.

The policy direction aligns with a broader objective to position the United Kingdom as a competitive hub for digital-asset activity. A more flexible settlement timetable could enable smoother cross-border activity and make the domestic settlement system more attractive to international participants seeking predictable, regulated access to UK rails. For institutions, this shift implies updated operational risk frameworks, new liquidity management considerations, and enhanced reconciliation processes to cope with a longer window of activity.

Policy signals since Breeden’s City Week remarks indicate a willingness to adapt the UK’s regulatory and operational posture to a digital-money era. The BoE has also indicated that its stance on stablecoins—particularly pounds-denominated variants—has evolved in recent months as policymakers seek to balance industry engagement with prudent prudential considerations. The extended-hours proposal complements this approach by reducing settlement friction for those experimenting with or deploying tokenized deposits and related products.

Regulatory recalibration, stablecoins, and market-structure implications

The BoE’s evolving stance on stablecoins reflects a broader effort to calibrate risk while enabling practical use cases for digital assets. Officials have signaled a more flexible approach to reserve and backing requirements than previously proposed, emphasizing industry consultation and the need to avoid unnecessary barriers to adoption. The reexamination of consumer holding limits and other prudential safeguards is aimed at lowering friction for early adopters, provided robust safeguards are in place to maintain financial stability and consumer protection.

The CBDC conversation also features prominently in the Bank’s public discourse. The BoE’s CBDC Academic Advisory Group acknowledged that a retail CBDC is not strictly necessary to preserve monetary uniformity but could play a valuable supporting role as cash usage declines. This nuanced view reflects a policy environment that weighs the benefits of a potential digital-retail instrument against the complexities of design, privacy, access, and monetization of monetary policy transmission.

For institutions, the regulatory landscape remains a central factor in how and when to engage with tokenized products. Licensing regimes, compliance frameworks, and oversight expectations will shape the pace and manner of participation in digitized markets. While the UK signals openness to innovation, the emphasis remains squarely on resilience, risk management, and a coherent supervisory pathway that can adapt to evolving technologies and business models.

From a systemic perspective, the BoE’s actions illustrate how a major financial center is reconciling innovation with oversight. The move to 24/7 settlement capabilities, coupled with an adaptable stance on tokenization and stablecoins, signals a policy framework designed to attract institutional participation while maintaining rigorous standards for stability and consumer protection. This approach could influence the global regulatory narrative, encouraging other jurisdictions to pursue parallel reforms that balance fintech advancement with prudential safeguards.

Closing perspective

As tokenization and digital-money frameworks become more central to policy discussions, the Bank of England’s course suggests a staged, risk-conscious evolution of the UK’s financial plumbing. Institutions should monitor regulatory updates, settlement-infrastructure proposals, and the ongoing dialogue around stablecoins and CBDC to anticipate changes in licensing, compliance requirements, and operational preparedness. The overarching question remains whether the balance between innovation and stability can be maintained as these technologies mature and scale.

Wintermute launched its first DeFi vault product, Armitage, supporting collateral types unavailable on competing curator platforms.

Wintermute, the algorithmic trading firm and liquidity provider, entered the DeFi vault curation space on May 19 with the launch of Armitage, a new vault product designed to accept collateral types that competing curators cannot or will not support. The announcement marks Wintermute’s first direct move into yield infrastructure from its established position as a market maker and DeFi liquidity provider.

Armitage is built as a curator on the Morpho vault model, where independent operators define a vault’s strategy, acceptable collateral, and risk parameters without holding custody of depositor funds.

Wintermute said the product’s differentiation lies in its ability to handle collateral types that other curators treat as too complex or illiquid. As crypto.news reported in January, Bitwise entered the same curator space on Morpho earlier in 2026, targeting institutional USDC depositors at approximately 6% APY through conservative overcollateralised lending markets.

DeFi vault curation becomes institutional battleground

The DeFi vault sector has attracted a wave of institutional curators throughout 2026. Morpho’s total value locked stands at approximately $5.8 billion, with curators including Gauntlet, Steakhouse Financial, MEV Capital, and Bitwise competing for depositor capital.

Wintermute’s entry adds a market-maker perspective to curation: the firm has direct access to liquidity across hundreds of trading venues and deep experience managing collateral risk in leveraged positions, capabilities that could allow it to accept assets that pure risk shops avoid.

As crypto.news documented, even the Ethereum Foundation has deployed ETH into Morpho vaults as part of its shift away from periodic token sales toward yield-generating treasury management.

That institutional migration toward on-chain vaults is expanding the pool of depositors Armitage can target, particularly those holding non-standard collateral such as tokenised real-world assets, long-tail altcoins, or structured products.

As crypto.news covered, Morpho’s expansion to the Flare blockchain earlier in 2026 showed how curator-led vaults are extending beyond Ethereum mainnet to reach XRP and other asset holders.

Wintermute has not disclosed the specific collateral types Armitage accepts, vault APY targets, or initial AUM. The firm said the product is designed for institutional counterparties and will expand its offering as the platform scales.

Massachusetts Senator Elizabeth Warren accused Office of the Comptroller of the Currency’s (OCC’s) Jonathan Gould of violating banking laws by approving national trust charters for cryptocurrency companies.

In a Monday letter to Gould, Warren said the OCC head had “approved at least nine national trust charters for crypto companies that intend to engage in activities that appear to go far beyond the narrow set of activities permitted by law,” an apparent violation of the National Bank Act.

Source: US Senate Banking Committee

She called on Gould to provide the full applications of crypto companies the OCC had approved or conditionally approved since December 2025, including Coinbase, Crypto.com’s parent company, Ripple, Stripe, BitGo, Circle, Fidelity Digital Assets, Protego Holdings and Paxos, as well as communications between the office and US President Donald Trump, members of his family and White House officials.

“These companies are effectively crypto banks that want to evade the fundamental safeguards and obligations that come with being a bank,” said Warren. “Your decision to facilitate this regulatory arbitrage not only conflicts with federal law, it also poses serious risks to consumers, the safety and soundness of the banking system, and the separation of banking and commerce.” 

Related: Warren urges Fed, Treasury not to ‘bail out’ crypto amid Trump-linked firm concerns

Warren, ranking member of the US Senate Banking Committee, has repeatedly criticized lawmakers and regulators for supporting policies with potential conflicts of interest related to Trump’s ties to the crypto industry. She pushed for provisions in the crypto market structure bill, the CLARITY Act, in a committee markup last week and called on Gould to delay consideration of the Trump family-backed crypto business World Liberty Financial, which filed for a charter in January.

Cointelegraph requested comment from the OCC but did not receive an immediate response.

Kraken parent’s application under review

On May 8, Payward, the parent company of cryptocurrency exchange Kraken, filed an application with the OCC for a national trust charter. The company said, if approved, the charter would allow it to “provide fiduciary custody and other services primarily for digital assets” under the Payward National Trust Company.

A national trust bank charter mainly allows holders to provide fiduciary and custodial services without engaging in deposit-taking or commercial lending, which means they are not subject to the same regulatory requirements as traditional banks.

Magazine: Crypto scammers face death, Aussie CGT makes Asian hubs attractive: Asia Express

TLDR

• Polymarket has launched prediction markets tied to private company milestones for retail traders.
• The platform partnered with Nasdaq Private Market to provide verified data for contract outcomes.
• Traders can speculate on events like IPO timing and valuation targets without owning company shares.
• The contracts resolve based on real data and follow a yes or no outcome structure.
• Nearly 1600 unicorn companies globally hold a combined value exceeding $5 trillion.

Polymarket has launched new prediction contracts tied to private companies and their milestones. The platform partnered with Nasdaq Private Market to supply verified data for contract outcomes. The move introduces retail access to a $5 trillion private market previously limited to institutional investors.

Polymarket Expands Access to Private Company Events

Polymarket introduced contracts that track private company milestones like valuations and IPO timelines. The platform uses blockchain infrastructure to enable real-time trading on these outcomes.

The company confirmed that users can trade without owning actual shares in private firms. Instead, traders take positions on defined events that resolve as “yes” or “no.”

Nasdaq Private Market will supply the official data used for settlement decisions. The firm tracks private transactions and valuation benchmarks across secondary markets.

A Polymarket spokesperson stated, “We aim to broaden access to private market signals through transparent contracts.” The platform confirmed that all outcomes depend on verified external data sources.

The companies reported that nearly 1,600 unicorn startups now exist worldwide. These firms hold a combined valuation exceeding $5 trillion across global markets.

Retail Traders Gain Exposure Without Equity Ownership

Retail participants have historically lacked access to private company growth before public listings. Venture capital firms and accredited investors have dominated early-stage investment opportunities.

Polymarket’s structure allows users to engage with these developments through prediction markets. Traders can speculate on whether companies reach valuation targets or file IPOs.

The platform clarified that contracts do not represent ownership or equity stakes. Instead, they function as binary instruments based on measurable corporate events.

Nasdaq Private Market operates an infrastructure that supports secondary share trading. It collects transaction data that helps determine pricing trends in private markets.

A Nasdaq Private Market representative stated, “Our data ensures consistent and transparent contract resolution.” The firm emphasised accuracy in tracking private market activity.

New Data Model Drives Market Resolution

The partnership relies on structured datasets that define clear outcomes for each contract. Polymarket integrates this data directly into its blockchain-based system.

Each contract resolves based on predefined conditions linked to real-world company developments. This approach reduces ambiguity in outcome determination.

Private markets often lack continuous pricing visibility compared to public exchanges. As a result, valuation data typically emerges during funding rounds or secondary sales.

Polymarket stated that prediction contracts can reflect real-time sentiment from traders. These signals may indicate how participants view company performance or timelines.

The companies confirmed that the system will continue expanding to include more private firms. They plan to introduce additional contracts tied to evolving market data.

XRP (XRP) has fallen 12% over the last five days, and the confirmation of a bearish pattern now points to the risk of more losses ahead.

Key takeaways:

• XRP/USD’s bear pennant pattern on the three-day chart points to a possible 52.5% drop toward $0.65.
• Persistent institutional demand through exchange-traded products supports the case for a recovery in XRP price. 

XRP’s descending triangle breakdown is underway

Since early February, the XRP/USD pair has been consolidating inside a bear pennant on the three-day chart.

In technical analysis, bear pennants are typically viewed as bearish continuation patterns. The pattern was confirmed when the price produced broke below the pennant’s lower trend line at $1.40, as shown in the chart below.

Related: JPMorgan lifts Bitcoin ETF exposure in Q1, led by BlackRock’s IBIT

The downside target is derived by taking the height of the initial drop (the pennant’s post) and placing it lower from the point where the price breaks below the pattern’s lower trend line.

XRP/USD three-day chart. Source: Cointelegraph/TradingView,

XRP’s measured downside target comes in near $0.65, about 52.5% below current levels.

XRP’s Stoch RSI on the weekly chart “has confirmed a deathcross, marking the third time this signal has flashed since the July‑2025 ATH,” technical analyst ChartNerd said in a recent post on X.

The previous two crosses produced deeper corrections of about 50%, and the one in January came after a “relief rally into a weekly 20/50 EMA death cross,” the analyst said, adding:

“A failure at the weekly 20 (just retested) or the weekly 50 ($1.80) will likely open the next leg down later in the year.”

XRP/USD weekly chart. Source: X/ChartNerd

The daily RSI has dropped to 42 from 63 over the last seven days, suggesting increasing bearish momentum. 

As Cointelegraph reported, buyers are expected to aggressively defend the $1.27 as a close below it may sink the XRP/USDT pair to $1.11 and later to the psychological level at $1. 

XRP price shuns ETF demand

The five-day price correction comes even as institutional sentiment remains relatively positive, as reflected in steady inflows into US-based XRP spot ETFs.

According to data from SoSoValue, XRP ETFs added $750,000 on Monday. This marked nine consecutive days of net inflows, totaling $95.5 million. This streak has pushed cumulative inflows to nearly $1.4 billion and assets under management (AUM) to $1.14 billion.

Spot XRP ETF flows chart. Source: SoSoValue

Global XRP investment products also registered weekly inflows of approximately $67.6 million during the week ending May 15, outperforming Bitcoin (BTC) and Ether (ETH), which saw $981.5 million and $250 million in outflows, respectively.

Global crypto ETP flows table. Source: CoinShares

This indicates institutional appetite for XRP products is “heating up, signalling growing confidence in regulated crypto exposure,” TronWeekly said in a post on Tuesday.

As Cointelegraph reported, stronger technical validation, passage of the CLARITY Act in the US and recovering network activity could also contribute to XRP’s recovery. 

Bitcoin traded around month-to-date lows on Tuesday as a surge in U.S. Treasury yields pressured risk assets and spilled into safe-haven plays. The market backdrop remained dominated by elevated oil prices, war-risk sentiment, and a sense that central-bank dynamics may stay tight longer than anticipated.

Key points:

• Bitcoin moved with other risk assets as U.S. bond yields jumped, amplifying pressure on equities and crypto markets.
• Macro headwinds, including higher oil prices and the ongoing energy-inflation backdrop, pressured sentiment and pushed precious metals lower.
• Bitcoin hovered near a critical technical level, with analysts warning that a break lower could prolong a period of consolidation.
• Geopolitical headlines and policy developments added to the volatility, underscoring the fragility of the current risk-off environment.

US 30-year yields spike to multi-decade highs

Market data indicated BTC/USD was trading just under $77,000 as Wall Street opened, maintaining the prior session’s floor but facing renewed pressure from higher long-dated yields. The 30-year U.S. Treasury yield rose to its highest level since July 2007, a move that reverberated through stocks, gold, and other traditional safe havens.

This shift fueled a broad risk-off mood as investors recalibrated the cost of capital against inflationary pressures and potential escalations in energy-related spending. Gold also weakened, with the XAU/USD pair dipping below $4,500 to mark its weakest level since late March, illustrating how the macro unwind was affecting non-equity assets as well.

Ole S. Hansen, head of commodity strategy at Saxo Bank, framed the move as a response to increased demand for “greater compensation for holding longer-dated debt amid war-driven energy inflation and mounting concerns over widening budget deficits.” He noted the price dynamics showed a market reacting to a confluence of oil momentum, inflation expectations, and central-bank rate outlooks.

In another signal of the day’s risk-off tone, traders and observers pointed to the broader bond-market reaction as a primary driver of the market’s pullback in risk assets, including Bitcoin.

Bitcoin at a crucial support zone, but upside remains uncertain

Within the crypto space, anxiety over the macro setup grew as traders weighed the persistence of high yields against the possibility of renewed liquidity support. Strategy-focused commentator Michaël van de Poppe highlighted a dual drag on Bitcoin from elevated bond yields and firm oil prices, arguing that these factors are not supportive of risk-on assets in the near term.

“Bitcoin is at a crucial level of support and it seems to be that it’s going to be holding.”

He noted that a sustained move below key levels could imply a longer accumulation phase before renewed upside, underscoring the risk-off environment more than a definitive breakout signal. A later post summarized the risk: “Anything lower of $75,000-76,000 might signal that the accumulation needs to take longer.”

Analysts stressed that Bitcoin’s near-term trajectory would likely hinge on how quickly the macro pressures abate—particularly whether yields cool and if oil subsides—before investors gain enough confidence to re-enter risk assets with conviction.

Geopolitics and macro headlines compound market sensitivity

Beyond the bond market, headlines surrounding the U.S. stance on Iran and broader Middle East tensions fed into a tense mood acrossAsset classes. Reported moves and comments from political leaders and influencers contributed to the sense that the risk environment remains prone to sudden shifts, with macro catalysts capable of jolting both traditional markets and crypto markets in tandem.

In a related line of commentary, market observers pointed to the possibility that even brief developments in the conflict landscape or diplomatic engagements could modulate oil prices and inflation expectations, further shaping the path of Bitcoin and other risk assets in the short term.

What to watch next

Market participants will be watching the trajectory of U.S. yields, oil prices, and central-bank signals for any signs of a reversal in the risk-off mood. If long-dated yields resume their ascent or oil remains elevated, Bitcoin could test additional support levels again, delaying any meaningful upside momentum. Conversely, a broad-based risk-on rebound and cooling inflation expectations could help BTC regain traction, particularly if liquidity conditions improve and investors re-enter the market with a renewed appetite for crypto risk assets.

Additionally, traders will be mindful of geopolitical developments and policy remarks that could amplify volatility. Given the current cross-currents, readers should prepare for continued price dispersion across crypto and traditional markets as new data and headlines emerge.