Warren readies Senate Banking scrutiny of prediction markets and Trump crypto

Sen. Elizabeth Warren is preparing to use her expected chairmanship of the Senate Banking Committee in January to scrutinize prediction markets, Trump family crypto businesses, Big Tech and Wall Street. Democrats’ midterm victory gives them control of committee gavels, including the ability to set agendas and compel sworn testimony through subpoenas.

Her immediate concern in prediction markets is whether gaps in the regulatory system permit insiders to profit unfairly. Warren has described the sector’s supervision as a “Wild West-style lack of oversight,” and she and Sen. John Curtis have already sought information from Kalshi and Polymarket about safeguards for election-related markets.

As reported on Nov. 8, Democrats’ electoral sweep had already put prediction-market platforms in Congress’s sights after their growing political prominence. Warren has separately criticized the Commodity Futures Trading Commission’s plan to preempt state regulation of prediction markets, arguing that the agency should focus on preventing derivatives markets from destabilising the economy rather than helping political insiders profit.

A Banking Committee aide told Decrypt that technology executives, administration officials, Trump family crypto businesses, Wall Street executives and large corporations should preserve documents and prepare for tough questioning. The committee’s remit covers banking, housing, cryptocurrency and the Federal Reserve, while its chair can convene hearings and launch investigations.

One likely subject is the Office of the Comptroller of the Currency’s preliminary conditional approval, issued Aug. 14, for World Liberty Trust Company, National Association. The proposed Florida-based national trust bank would be wholly owned by WLTC Holdings and plans to issue USD1 dollar-backed stablecoins to institutional clients nationwide, maintain reserves and offer digital-asset custody. It would take over USD1 issuance from BitGo Bank & Trust; the OCC identified USD1 as a core World Liberty Financial product and said the two businesses have indirect common owners.

The charter has not yet authorised the proposed bank to begin operating: it remains subject to preopening requirements. The OCC said World Liberty Trust would not issue, custody or deal in WLFI tokens, and that it received seven comments from four commenters on the application.

Warren had argued that the OCC should have delayed considering World Liberty Financial’s application until President Trump and his family divested from the company. In July, she warned Comptroller Jonathan Gould that the president’s financial interests could influence regulatory decisions.

Her broader challenge to crypto charters predates the World Liberty decision. Warren has said the OCC approved at least nine national trust charters for crypto companies from December 2025 and that several further applications were pending. She contends that firms’ proposed custody, payment, lending and stablecoin activities can resemble deposit-taking, while national trust companies may avoid the restrictions and safeguards imposed on full-service banks.

Warren’s ability to turn the agenda into legislation will remain constrained by the prospect of a presidential veto. The crypto industry’s Clarity Act stalled in the Senate, while Democrats have indicated they plan to pursue a broader crypto market-structure bill after taking control of Congress.