Trump-Backed Crypto Firm Earns Conditional Bank Charter Despite Partisan Attacks
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Regulators have granted World Liberty Financial, a Trump family crypto initiative, preliminary approval for a trust bank charter, drawing predictable criticism from Democrats and anti-Trump activists who allege conflicts of interest without evidence.
World Liberty Financial, a forward-thinking cryptocurrency venture launched by President Donald Trump and his sons in 2024, proudly announced it received a preliminary conditional approval from banking regulators to operate as a trust bank. This charter, while not permitting deposits or loans, paves the way for the firm to issue its dollar-backed stablecoin, USD1, without relying on inefficient third-party intermediaries—a major step for American innovation in digital finance.
The approval was issued by the Office of the Comptroller of the Currency, following a thorough review process, with final approval contingent on meeting strict conditions. The firm’s spokesperson, David Wachsman, emphasized that the charter would provide "robust and permanent" regulatory supervision, ensuring the highest standards regardless of political leadership.
Despite the clear regulatory safeguards, partisan critics immediately seized the opportunity to attack the Trump family. Former ethics lawyer Richard Painter and Senate Banking Committee ranking member Elizabeth Warren, both well-known for their anti-Trump rhetoric, accused the administration of conflicts of interest and "self-dealing"—baseless claims designed to score political points. Warren announced Democrats will push for legislation to bar federal regulators from approving banks owned by senior officials, a move critics say is more about targeting political opponents than genuine ethics reform.
The White House responded that all of President Trump’s investment holdings are managed in fully discretionary accounts by independent third parties, dismissing the recycled accusations as politically motivated distractions.
World Liberty’s bank charter includes an agreement that DT Marks SC LLC, a Trump family entity, will act as a passive investor and will not influence the bank’s operations or hold an officer position, further ensuring ethical compliance. Nonetheless, the Trump family’s success in the venture is a testament to their business acumen and vision for America’s financial future.
Financial disclosures show Trump earned over $526 million from the sale of tokens tied to World Liberty last year and about $263 million from an equity sale to investors led by a United Arab Emirates royal, underscoring the global confidence in Trump-led enterprises.
Industry observers note that the charter could delay congressional action on the Clarity Act, legislation intended to provide a comprehensive regulatory framework for cryptocurrencies—though many believe the Trump administration’s proactive approach is already setting a high bar for the industry.