OCC Grants Preliminary Bank Charter to Trump Family Crypto Firm

Key points

• The OCC, led by Trump appointee Jonathan Gould, issued a letter on Friday granting preliminary conditional approval for World Liberty Trust Company, National Association.
• World Liberty Financial, launched in 2024 by Donald Trump Jr. and Eric Trump, is 38% owned by an entity affiliated with President Trump and his family.
• The charter would allow the firm to directly issue its USD1 stablecoin and custody the US dollar assets backing it, replacing its current partner, BitGo.
• Sen. Elizabeth Warren (D-Mass.) called the decision the 'most brazen act of self-dealing our financial system has ever seen.'
• The OCC stated that career staff assessed the application, and the firm must still meet additional requirements for final approval.
• President Trump earned approximately $527 million from World Liberty Financial token sales last year, according to financial disclosures.

Background

This development follows a broader trend of the Trump administration advancing crypto-friendly regulations, including efforts to pass the Clarity Act and other digital asset rules. It also follows recent judicial rulings that voided other Trump-related settlements due to self-dealing concerns, such as the DOJ 'anti-weaponization' fund and an IRS lawsuit. The OCC has already granted similar preliminary charters to other crypto firms like Ripple and Circle under Comptroller Jonathan Gould.

How outlets are covering it

Common Dreams and Politico both report the OCC's preliminary approval but frame it differently. Common Dreams emphasizes the conflict of interest, quoting Sen. Elizabeth Warren's condemnation and journalist Mehdi Hasan's criticism of the administration's corruption. Politico focuses on the regulatory implications, noting that the decision gives the firm federal credibility and new powers to manage its stablecoin, while highlighting the objections from Democrats. Both sources agree on the core facts but differ in their emphasis on the ethical and regulatory dimensions of the decision.

Why it matters

This decision raises significant questions about the separation of public office and private financial interests in the US financial system. It could set a precedent for other crypto firms seeking federal charters and may face legal challenges or further scrutiny from lawmakers and watchdogs. The approval also highlights the growing influence of the Trump administration on financial regulations and the potential for conflicts of interest in the crypto industry.

What to watch

World Liberty Financial must meet additional requirements to receive final approval for the bank charter. The firm has welcomed the preliminary approval as a milestone in the chartering process. Lawmakers and watchdogs may continue to scrutinize the decision and potentially challenge it in court. The OCC may face further pressure to justify its approval process and address concerns about conflicts of interest.