BitGo CEO Mike Belshe sent an open letter to U.S. Senator Elizabeth Warren on the 19th (local time), refuting criticism surrounding the Office of the Comptroller of the Currency (OCC)'s trust bank authorization. Previously, Senator Warren had pointed out that the OCC's approval of trust bank authorizations for cryptocurrency companies could violate banking laws. In this regard, Belshe stated, "The term 'crypto bank' used by Senator Warren is a rhetorical term without a legal definition. BitGo does not lend or commingle customer assets, but rather holds them separately and isolated under fiduciary duty. Deposit banks operate on a fractional reserve model, where loans are made with customer deposits, and deposit insurance, capital regulations, etc., exist to address the risks of this structure. Applying deposit insurance to custodial banks that hold customer assets one-to-one is like requiring car insurance from someone who only takes the bus," he argued. He continued, "Consumer damage cases such as FTX, Celsius, and Voyager all occurred at institutions where fiduciary duty was absent. Trust bank authorization is a solution, not a threat," he emphasized.
