World Liberty Trust Company: Conditional Approval for Bank Charter Raises Concerns
A trust company associated with the Trump family's cryptocurrency venture, World Liberty Financial, has received conditional approval to establish a bank. The Office of the Comptroller of the Currency (OCC) granted preliminary approval to World Liberty Trust Company to establish a bank charter, enabling it to issue and manage its stablecoins independently. World Liberty Financial, co-founded by President Trump's sons and Steve Witkoff's sons in 2024, is 38% owned by an entity linked to Donald J. Trump and his family members, as per the company's website.
The decision to grant bank status to a business connected to the Trump family has drawn criticism from Democrats, who argue that it poses a conflict of interest. Sen. Elizabeth Warren and other Democratic senators plan to introduce a bill to prevent the president, vice president, and their family members from owning or controlling a bank. Despite the concerns, World Liberty asserts that safeguards are in place to prevent the family's involvement in the bank while Mr. Trump is in office.
World Liberty emphasized that its trust company's national charter will ensure robust regulatory oversight from the OCC, emphasizing its commitment to regulation and continuous supervision. The White House and Trump Organization did not provide immediate comments on the matter. Cryptocurrency has been a profitable venture for the president, with reports indicating earnings of at least $1.4 billion from crypto ventures last year. While Mr. Trump has hosted events for his cryptocurrency business, he has stated that he is not directly involved in its day-to-day operations.
World Liberty's trust company must meet additional requirements before receiving final approval to operate as a bank. The company's affiliation with the Trump family has raised concerns among critics, highlighting the need for transparency and regulatory compliance in the evolving cryptocurrency landscape.