Conditional Approval Granted to Trump-Linked Trust Company for Bank Charter

The Treasury Department’s Office of the Comptroller of the Currency (OCC) recently gave conditional approval to a trust company linked to the Trump family’s crypto enterprise, World Liberty Financial, to set up a bank. This charter would enable the World Liberty Trust Company to issue and manage its own stablecoins independently.

World Liberty Financial was established in 2024 by President Trump’s sons alongside Steve Witkoff’s sons, who served as a special envoy to the Middle East in the Trump administration. The company’s website indicates that 38% of it is owned by an entity connected to Donald J. Trump and certain family members.

The move has faced criticism, especially from Democrats, who argue that granting bank status to a business tied to the Trump family could pose a conflict of interest. Austin Campbell, a New York University Stern School of Business professor, remarked on the unusual circumstance of the OCC needing to oversee an entity connected to the president’s family.

“This creates the awkward situation of the OCC needing to police World Liberty, which has an affiliation with the president’s family,” Campbell stated. “It is pretty unprecedented.”

Senator Elizabeth Warren from Massachusetts described the decision as a “brazen act of self-dealing.” She announced plans to introduce legislation with other Democratic senators to prohibit the president, vice president, and their family members from owning or controlling a bank.

World Liberty Financial claims safeguards have been set up to ensure the Trump family does not influence the bank while Mr. Trump holds office. A spokesperson noted that the trust company’s national charter would guarantee ongoing regulatory scrutiny from the federal banking regulator, the OCC, even beyond the Trump administration.

“Critics are missing the point: World Liberty Financial is running towards regulation and continuous oversight, not away from it,” the spokesperson stated.

The White House and the Trump Organization have yet to respond to queries for comments. Meanwhile, crypto ventures have proven highly profitable for the president, with financial disclosures revealing he earned a minimum of $1.4 billion from such ventures last year. Mr. Trump, while having hosted a gala for top investors in his cryptocurrency venture last year, maintains he is not involved in its daily operations.

Before final approval to become a bank, the World Liberty trust company must still satisfy several requirements set by the OCC.