The Treasury Department’s Office of the Comptroller of the Currency (OCC) has given conditional approval to a trust company linked to the Trump family’s crypto business, World Liberty Financial, to create a bank. This approval allows World Liberty Trust Company to issue and manage its stablecoins independently.
World Liberty Financial, founded in 2024 by President Trump’s sons alongside Steve Witkoff’s sons, is 38% owned by an entity tied to Donald J. Trump and some family members, according to the company’s website.
The decision has faced scrutiny from some Democrats. They argue that allowing a Trump-associated business to gain bank status poses potential conflicts. Austin Campbell, a professor at New York University’s Stern School of Business, described this situation as unprecedented, highlighting potential oversight challenges for the OCC.
“This creates the awkward situation of the OCC needing to police World Liberty, which has an affiliation with the president’s family,” said Campbell.
Senator Elizabeth Warren of Massachusetts labeled the move as “a brazen act of self-dealing.” She and other Democratic senators plan to introduce legislation aimed at preventing the president, vice president, and their families from having control over a bank.
World Liberty maintains that firewalls are in place to limit the family’s influence on bank operations while Mr. Trump is in office. A spokesperson for the company emphasized the role of the OCC as a stringent regulatory body overseeing the bank, ensuring enduring oversight 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.
Both the White House and Trump Organization have not made immediate comments on the matter.
The cryptocurrency sector has proven highly profitable for President Trump. Financial disclosures reveal earnings of at least $1.4 billion from crypto ventures in the previous year. Though Mr. Trump held a gala with significant investors for his crypto business, he claims no involvement in its daily management. World Liberty’s trust company must satisfy more criteria before obtaining final approval as a bank.