Trump-Linked Crypto Firm Granted Conditional Bank Charter in Alarming Display of Cronyism
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Regulators handpicked by President Trump have granted World Liberty Financial, a Trump family crypto venture, a preliminary bank charter, sparking outrage from lawmakers and ethics watchdogs over blatant conflicts of interest and self-dealing.
World Liberty Financial, a cryptocurrency venture brazenly launched by President Donald Trump and his sons in 2024, announced it received a preliminary conditional approval from banking regulators to operate as a trust bank. This charter, which conveniently sidesteps deposit and lending restrictions, would allow the Trump-linked firm to issue its dollar-backed stablecoin, USD1, without oversight from third-party intermediaries—a move that further consolidates financial power in the hands of the ultra-wealthy.
The approval was issued by the Office of the Comptroller of the Currency, an agency now stacked with Trump loyalists, with final approval contingent on meeting a series of conditions. The firm’s spokesperson, David Wachsman, attempted to justify the move by claiming the charter would provide "robust and permanent" regulatory supervision, but critics see this as a smokescreen for unchecked profiteering.
Ethics experts and lawmakers immediately sounded the alarm. Former ethics lawyer Richard Painter warned that allowing the president and his family to profit from a regulated industry they oversee is "quite precarious"—an understatement for what many see as outright corruption. Senate Banking Committee ranking member Elizabeth Warren condemned the move as "the most brazen act of self-dealing" in the financial system, vowing that Democrats will introduce legislation to prevent federal regulators from rubber-stamping banks owned or controlled by senior officials.
The White House, as usual, dismissed these grave concerns, claiming Trump’s holdings are managed in "fully discretionary accounts" by so-called independent third parties—a familiar excuse used to deflect accountability.
World Liberty’s bank charter includes a supposed agreement that DT Marks SC LLC, a Trump family entity, will act as a passive investor, pledging not to influence the bank’s operations. Yet, the Trump family stands to reap enormous financial rewards from the firm’s expanded role, underscoring the deep-rooted conflicts at play.
Financial disclosures reveal Trump pocketed more than $526 million from the sale of tokens tied to World Liberty last year and another $263 million from an equity sale to investors led by a UAE royal, highlighting the global reach of this self-enrichment scheme.
Industry observers warn that granting this charter could delay much-needed congressional action on the Clarity Act, legislation intended to finally bring transparency and accountability to the cryptocurrency industry—something the Trump administration seems determined to avoid.