Trump-Affiliated Crypto Business Gains Preliminary Bank Charter
A trust company linked to the Trump family’s crypto enterprise, World Liberty Financial, has been conditionally approved to form a bank. The Treasury Department’s Office of the Comptroller of the Currency (OCC) granted preliminary approval for World Liberty Trust Company to establish a bank charter. This allows the company to issue and manage its stablecoins independently.
World Liberty Financial, founded in 2024 by President Trump’s sons along with the sons of Steve Witkoff, a special envoy to the Middle East, has strong ties to the Trump family. According to its website, the entity holds a 38% stake owned by Trump family interests.
This decision has sparked criticism from Democratic lawmakers. They argue that bestowing bank status on a Trump-affiliated business introduces a potential conflict of interest. Austin Campbell, a professor at New York University’s Stern School of Business, remarked on the unusual nature of such an affiliation and the position it puts the OCC in regarding regulation.
Senator Elizabeth Warren, representing Massachusetts, described the move as a blatant example of self-dealing. She, along with other Democratic senators, announced plans to propose legislation prohibiting the president, vice president, and their family members from bank ownership or control.
World Liberty maintains that measures are in place to ensure the Trump family does not influence the bank while President Trump is in office. A spokesperson for World Liberty emphasized that their national charter would guarantee stringent regulation and permanent oversight by the OCC, which they believe will endure past the Trump administration.
In defense of the move, the spokesperson highlighted that World Liberty Financial welcomes regulation and oversight, contrary to critics’ claims. However, the White House and Trump Organization have not yet provided comments.
Cryptocurrency has proven financially beneficial for President Trump, who reportedly earned over $1.4 billion from crypto ventures last year. Despite hosting investor events for his cryptocurrency business, President Trump claims he is not involved in daily operations. World Liberty’s trust company must still satisfy various requirements to secure final approval for bank formation.