Washington – On Friday, the Office of the Comptroller of the Currency gave World Liberty Financial, the cryptocurrency firm founded by former President Donald Trump and his sons, a preliminary conditional approval to operate as a trust bank. The decision, made by regulators appointed during Trump’s administration, has drawn sharp criticism from ethics groups and several members of Congress.
What the charter allows
World Liberty Financial will not be permitted to take deposits or make loans, but the charter will let the firm issue and safeguard USD1, a dollar‑backed stablecoin that now circulates more than $4 billion. The firm says the charter will provide “robust and permanent” regulatory supervision that will outlast the Trump administration.
Critics cite conflict‑of‑interest risks
Democratic Senator Elizabeth Warren, ranking member of the Senate Banking Committee, called the move “the most brazen act of self‑dealing our financial system has ever seen.” Warren and other Senate Democrats plan to introduce legislation that would bar federal regulators from approving bank applications owned or controlled by the President, Vice President, members of Congress, or their families.
Richard Painter, former chief ethics lawyer for President George W. Bush, warned that “bank failures can be catastrophic, as we found out in 1929 and again in 2008,” adding that it is precarious for a sitting president to have heavy personal stakes in a heavily regulated industry.
Financial gains for the Trump family
According to disclosure forms, Trump earned more than $526 million from the sale of cryptocurrency tokens tied to World Liberty Financial last year, and roughly $263 million from the sale of equity to a group led by a United Arab Emirates royal, as reported by The Wall Street Journal.
World Liberty is managed by Zach Witkoff, son of Trump friend and former Middle East envoy Steve Witkoff. The firm also noted that DT Marks SC LLC, a Trump family entity, has agreed to be a passive investor in the new bank, pledging not to influence operations or hold an officer position.
White House response
White House spokeswoman Anna Kelly dismissed the criticism, stating that all of President Trump’s investment holdings are held in fully discretionary accounts managed by independent third‑party financial institutions and that the accusations are “the same, tired narrative that Democrats have pushed against President Trump, his family and his administration for a decade.”
Broader regulatory context
The charter decision arrives as Congress debates the Clarity Act, legislation intended to create a clear regulatory framework for cryptocurrency. Some Democrats fear that the ethics controversy could further delay the bill’s passage.
Patrick Woodall, managing director of Americans for Financial Reform Education Fund, warned that the OCC “cannot credibly or impartially supervise or examine the Trump family crypto bank” and that the charter creates “unprecedented risks because it creates insurmountable conflicts of interest.”
What’s next
The preliminary approval is conditional; final approval will depend on meeting a series of regulatory requirements. Meanwhile, Senate Democrats are moving forward with their proposed bill to prevent future conflicts of interest involving high‑level officials and financial institutions.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
