U.S. Bank Regulator Greenlights Trump-Linked Crypto Firm Amid Conflict of Interest Outcry
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The Office of the Comptroller of the Currency has controversially granted a conditional bank charter to World Liberty Trust, a company partially owned by the Trump family, enabling it to issue a U.S. dollar-pegged stablecoin. Critics warn this move represents a dangerous blurring of lines between political power and financial interests.
In a stunning display of regulatory capture and disregard for ethical boundaries, the Office of the Comptroller of the Currency (OCC) on Friday conditionally approved World Liberty Trust Co. for a bank charter, allowing the Trump-affiliated firm to issue a stablecoin tied to the U.S. dollar. The trust, 38% owned by an entity linked to former President Donald J. Trump and his family, exemplifies the ongoing entanglement of political elites and the financial sector.
This approval allows World Liberty Financial, the trust’s sponsor, to bypass third-party crypto provider BitGo and directly issue digital currency to clients, further consolidating power and profit within the Trump orbit. The OCC claims the charter is conditional, pending increased capital and other requirements, but critics argue this is little more than a formality.
Democratic lawmakers have sounded the alarm over glaring conflicts of interest. Senator Elizabeth Warren, a staunch advocate for financial accountability, wrote to the OCC demanding a halt to the approval, highlighting the unprecedented situation of a sitting president overseeing a financial entity in which his family profits. She condemned the move as “the most brazen act of self-dealing our financial system has ever seen” and pledged to introduce legislation to prevent such abuses.
The White House, predictably, attempted to deflect criticism. Spokeswoman Anna Kelly insisted that the president’s assets are in a so-called blind trust managed by his children, a claim that does little to address the obvious ethical violations.
Meanwhile, World Liberty Financial boasts massive early revenues, with Trump family crypto ventures raking in over $1.4 billion, according to financial disclosures. The firm has also secured a staggering $2 billion investment from Abu Dhabi’s MGX and entered a partnership with Binance to facilitate large transactions using its stablecoin, raising further questions about foreign influence and unchecked financial power.
The OCC maintains that its review was in line with statutory and ethical obligations, but this preliminary approval only underscores the urgent need for stronger safeguards against the corrupting influence of money in politics.