OCC Rejects Warren's Call, Proceeds with World Liberty Financial Charter

VADODARA, January 24, 2026 — The U.S. Office of the Comptroller of the Currency (OCC) has formally rejected Senator Elizabeth Warren's call for a special investigation into World Liberty Financial's (WLFI) bank charter application, opting instead to proceed under standard procedures. This latest crypto news arrives as Bitcoin consolidates at $89,429 amid extreme market fear, highlighting the tension between regulatory scrutiny and institutional adoption pathways.

Market Context & Background

Market structure suggests regulatory clarity acts as a primary catalyst for institutional capital allocation. The OCC's chartering process for crypto-adjacent entities has been a focal point since 2020, when it first granted conditional approvals to firms like Anchorage Digital. Underlying this trend is a broader shift toward integrating digital asset custody and settlement into traditional finance. Consequently, any deviation from established procedures creates immediate volatility in liquidity pools. This development mirrors the 2021-2022 cycle where regulatory uncertainty led to significant Fair Value Gaps (FVGs) in asset prices. Related developments include regulatory hurdles for tokenized stocks and institutional accumulation signals, both occurring within the same extreme fear environment.

What Happened?

According to CoinDesk's report, Senator Warren, a prominent cryptocurrency critic, urged the OCC to halt WLFI's charter process until President Trump divests his stake. The OCC rejected this call, stating it will decide based on standard procedures. This decision follows Warren's previous public criticisms of crypto banking charters, citing potential conflicts of interest. The OCC's response, sourced from its official communication channels, emphasizes procedural neutrality. Market analysts interpret this as a reinforcement of existing frameworks rather than a policy shift, avoiding the creation of a precedent for politically motivated interventions.

Technical Analysis & Price Action

On-chain data indicates Bitcoin's current price of $89,429 sits within a high-volume node, suggesting accumulation. The daily RSI at 48 reflects neutral momentum, while the 50-day moving average at $91,200 acts as immediate resistance. A Bullish Invalidation level is set at $87,500, corresponding to the previous weekly Order Block and a 0.618 Fibonacci retracement from the recent swing high. A break below this level would signal a Liquidity Grab and potential retest of $85,000. Conversely, the Bearish Invalidation level is $92,500, above which a Gamma Squeeze could accelerate toward $95,000. Market structure suggests the OCC news has not yet triggered significant volatility, with price action remaining range-bound.

By The Numbers

Why It Matters

For institutions, this decision reduces short-term regulatory uncertainty, potentially facilitating smoother capital deployment into crypto-native banking services. According to the OCC's official guidelines, standard procedures emphasize financial stability and compliance over political considerations. For retail, it reinforces that regulatory frameworks are evolving but not subject to abrupt political shifts. The impact is amplified by the current extreme fear sentiment, where any positive regulatory clarity can act as a catalyst for mean reversion in sentiment indicators.

Community Sentiment

Market analysts on X/Twitter note the OCC's move as a "procedural win" for crypto banking. Bulls argue it prevents politicization of charter approvals, while bears highlight ongoing scrutiny from figures like Warren. One analyst stated, "The OCC sticking to its playbook is bullish for long-term institutional onboarding." This sentiment aligns with broader discussions on regulatory predictability, as seen in FOMC policy expectations.

Price Prediction / Future Outlook

Bullish Case: If Bitcoin holds above $87,500 and breaks $92,500, regulatory continuity could drive a sentiment shift toward greed, targeting $95,000 as the next Volume Profile peak. Institutional inflows may increase as perceived regulatory risk diminishes.Bearish Case: A break below $87,500 invalidates the bullish structure, likely triggering a sell-off toward $85,000. Persistent extreme fear and further regulatory challenges, such as those impacting exchange operations, could extend the downtrend.