A trust company associated with the Trump family’s cryptocurrency venture, World Liberty Financial, has received initial approval to create a bank. On Friday, the Office of the Comptroller of the Currency (OCC), part of the Treasury Department, granted conditional permission for the establishment of World Liberty Trust Company’s bank charter. This approval means the company will be able to issue and manage its own stablecoins directly, without needing a third party.
World Liberty Financial was founded in 2024 by President Trump’s sons and the sons of Steve Witkoff, who served as a special envoy during the Trump administration. The company is partially owned by an entity linked to Donald Trump and some members of his family.
The approval has sparked considerable backlash from Democrats, who argue that allowing a bank to be associated with the Trump family raises serious ethical concerns. Austin Campbell, a professor at New York University’s Stern School of Business, pointed out that this situation places the OCC in a difficult position, as it would be responsible for overseeing a business connected to the president’s family, something that is rare in this context.
Senator Elizabeth Warren from Massachusetts described the decision as a blatant example of self-dealing. She and several other Democratic senators indicated plans to propose legislation that would prevent the president, vice president, and their families from owning or controlling a bank.
In response to the criticism, World Liberty’s representatives stated that measures have been put in place to ensure that the Trump family would not play any role in the bank’s operations while Mr. Trump is in office. A spokesperson for World Liberty emphasized that the establishment of the national charter would bring ongoing regulatory oversight from the OCC, which will outlast the current administration.
Critics, according to the spokesperson, fail to recognize that World Liberty Financial is actively seeking regulation and oversight rather than avoiding it. The White House and the Trump Organization did not reply to requests for more information.
Cryptocurrency has proven to be a highly lucrative sector for the president. Financial reports have indicated that Mr. Trump earned at least $1.4 billion from crypto-related activities in the past year. While he has hosted events with investors from his cryptocurrency business, he maintains that he is not involved in the daily operations of the company.
Before receiving final approval, World Liberty’s trust company must fulfill additional requirements to officially operate as a bank.
