World Liberty Financial, a cryptocurrency venture tied to President Donald Trump, is nearing approval to operate as a federally chartered trust bank, according to people familiar with the matter. The Office of the Comptroller of the Currency (OCC) is expected to grant the charter soon, signaling that rejection is unlikely.
Charter decision expected soon
Two former OCC officials said the application is in its final stages, with Comptroller Jonathan Gould expected to announce the decision. The company applied for the charter in January after establishing a U.S. trust entity, following a path previously taken by other crypto firms that received conditional approvals.
If approved, the charter would allow World Liberty to issue and redeem its USD1 stablecoin, hold fiat reserves, provide custody for digital assets, and handle settlement functions under federal oversight. It would also remove the need for intermediaries currently used in its operations.
Political and financial scrutiny intensifies
The pending approval has drawn attention due to Trump’s financial ties to the venture. Public disclosures show that 75% of proceeds from the company’s native token sales flow to DT Marks DEFI LLC, an entity controlled by Trump.
Estimates indicate that Trump and his family have generated more than $2.3 billion from multiple crypto ventures since the start of his second term, with World Liberty accounting for the largest share. Over a similar period, more than one million buyers of related crypto assets collectively recorded losses of roughly the same amount.
Congress probes foreign ties
Lawmakers are also examining the company’s international connections. A UAE-based entity invested $500 million into the firm and later participated in a $2 billion transaction with a major crypto exchange. These deals coincided with changes in U.S. policy on AI chip exports, prompting a House investigation into potential national security risks.
Separately, reports indicated that an entity linked to a member of the UAE royal family acquired a stake of nearly 49% shortly before Trump’s second inauguration, further intensifying scrutiny.
Lawmakers challenge regulatory process
Senator Elizabeth Warren has been among the most vocal critics, questioning whether the OCC should proceed with the approval while Trump maintains financial interests in the company. She has argued that granting such charters to crypto firms could allow them to bypass safeguards applied to traditional banks.
During a Senate hearing, Warren asked Gould whether he would delay or deny the application. Gould responded that the OCC is obligated to follow statutory procedures and said political considerations have not influenced the review process.
Gould has also said there is strong demand for new bank charters and that the agency is evaluating applications based on their likelihood of success rather than adopting a zero-risk approach.
Strategic implications for crypto operations
A federal charter would place World Liberty on similar regulatory footing as firms like Circle and Ripple. It would enable the company to directly control stablecoin issuance and custody operations under U.S. supervision.
The USD1 stablecoin has already been used in high-profile settings, including payments tied to a major sporting event hosted at the White House. With a charter, the company would be able to manage such activities independently, without relying on partner institutions.
White House and company remain silent
The White House has said Trump’s assets are held in a family-managed trust and maintains that no conflict of interest exists. The OCC and World Liberty have not provided additional comment.
The expected approval would mark a significant moment for both the cryptocurrency sector and U.S. financial regulation, bringing a politically connected crypto firm deeper into the federally supervised banking system.
Curious how Trump-linked tokens shape markets? Explore World Liberty Financial’s influence in this deep-dive on WLFI’s crypto role.
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