OCC Grants Conditional Bank Charter to Trump-Linked Crypto Firm

Key points

• The OCC issued a conditional approval for World Liberty Trust Co. to operate as a federally chartered trust bank, requiring the firm to meet additional capital and operational requirements before final authorization.
• World Liberty Financial, the parent entity, is 38% owned by an affiliate of President Trump and his family, according to the company’s own disclosures.
• The charter enables the firm to issue stablecoins backed by assets like U.S. Treasuries, allowing it to bring services in-house rather than relying on external partners such as BitGo.
• Zach Witkoff, son of Trump’s special envoy Steve Witkoff, serves as both the CEO of World Liberty Financial and the chairman of the newly chartered trust company.
• The OCC has received 40 new bank charter applications since 2025, a significant increase compared to the previous administration, with many tied to cryptocurrency projects.

Background

This development follows a broader regulatory shift in 2026, where the OCC and other agencies have prioritized crypto-focused rulemaking and bank charter approvals. Earlier in the year, regulators proposed overhauling the Community Reinvestment Act and issued guidance on lending risks, signaling a move toward deregulation and industry-friendly policies. This approval occurs amidst stalled legislative efforts, such as the Clarity Act, which failed to impose strict limits on presidential crypto holdings, prompting regulators to act independently.

How outlets are covering it

Politico emphasizes the direct conflict of interest, highlighting that this is one of the most direct official actions involving the president’s private finances. CNBC provides specific financial details, noting the 38% ownership stake and the strategic benefit of bringing stablecoin services in-house. While both outlets report the conditional nature of the approval, they contrast the administration’s push for federal credibility with Democratic objections. Senator Elizabeth Warren, cited by CNBC, called the move the 'most brazen act of self-dealing' and announced plans to introduce legislation preventing presidents from owning banks. Conversely, Zach Witkoff welcomed the decision, stating that federal supervision would enhance institutional trust in the USD1 stablecoin.

Why it matters

This approval sets a precedent for federal banking regulation of cryptocurrency ventures with political ties. It raises questions about the separation of government oversight and private financial interests, potentially influencing future legislation on executive conflicts of interest and the regulatory framework for digital assets in the United States.

What to watch

World Liberty Trust Co. must complete additional requirements, including raising capital, to receive final approval. Meanwhile, Senator Elizabeth Warren and other Democrats plan to introduce legislation to bar presidents and senior officials from owning or controlling banks. The OCC has not commented on the approval, but the agency continues to review a surge in crypto-related charter applications.