BitGo CEO Says Uninsured Crypto Banks Are Safer Than Traditional Banks

The U.S. Office of the Comptroller of the Currency conditionally approved five national trust bank applications on Dec. 12, 2025, including those from BitGo, Fidelity Digital Assets and Paxos. Such institutions do not take deposits and lack FDIC insurance, prompting traditional financial firms and Senator Elizabeth Warren to question whether regulation and consumer protections are adequate.

Warren raised her concerns in a letter to the OCC on May 18, 2026. BitGo CEO Mike Belshe responded the next day and reiterated his position in an American Banker interview broadcast on July 7. He said BitGo holds assets with 100% reserves, segregates them one-to-one and uses bankruptcy-remote arrangements, while making no loans. Stablecoin reserve assets are reviewed by an independent auditor twice a month, compared with the mostly quarterly reporting of traditional banks.