Trump-appointed regulator OKs banking license for Trump-linked crypto firm

The Trump administration has granted preliminary approval for a cryptocurrency venture backed by President Donald Trump’s family to operate a federally chartered trust bank, over the protests of Democrats who decried the decision as riddled with conflicts of interest. The Office of the Comptroller of the Currency, the bank regulatory arm of the Treasury Department, said in a letter on Friday that it was conditionally approving World Liberty Trust Co.’s application for a trust bank charter. The company must still meet additional requirements before it receives final approval, the regulator said. The decision stands to give new powers and federal credibility to a venture in which Trump and his family retain a substantial financial interest. It’s also among the most direct official actions that the administration has taken involving the president’s private finances. World Liberty Trust Co. President and Chairman Zach Witkoff said the charter will allow the company to manage its USD1 stablecoin, a crypto token whose value is pegged to $1, under the OCC’s watch. “USD1 grew because institutions trust how it operates, and confidence at enterprise scale deserves the backing of federal supervision,” Witkoff, the son of Trump’s special envoy, Steve Witkoff, said in a statement. “We welcome continuous scrutiny from Federal regulators for many years to come.” While Washington has been in knots over the steady drumbeat of news that Trump-linked businesses are expanding during his second term, the World Liberty application stood out to many. Some Democrats and ethics watchdogs argued that the bid was one of the clearest examples of the conflicts of interest that administration officials face as they weigh the wishes of Trump family-backed companies. And they were quick to bash the OCC’s approval. “This is the most brazen act of self-dealing our financial system has ever seen — and Congress cannot allow it to stand,” said Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee. Warren and other Democrats unveiled legislation on Friday that would prohibit regulators from approving banks that are owned or controlled by the president or the president’s family, vice president, members of Congress or other top government officials. A Democratic Senate aide said the Banking Committee would likely probe the OCC’s approval of the World Liberty bank charter next year if Democrats regain control of Congress. Citizens for Responsibility and Ethics in Washington CEO Donald Sherman called the OCC’s approval “the most egregious example to date of the President’s businesses profiting from his government job.” “The President continues to boost the crypto market at the expense of everyday Americans who are wondering what happened to the money in their own bank accounts,” he said. World Liberty, in advance of the approval, had rejected the conflict allegations — saying Trump is not involved in managing the company and that none of its leaders or employees work for the federal government. The White House has similarly said Trump has no involvement in business deals that would implicate his official responsibilities. Trump and his family nevertheless retain a substantial financial stake in World Liberty Financial. DT Marks DEFI LLC, an entity affiliated with Trump and members of his family, owns about 38 percent of the holding company that controls World Liberty Financial, according to the company’s website. The entity and Trump family members also hold 22.5 billion of World Liberty’s governance tokens. Trump disclosed nearly $600 million in income from World Liberty token and equity sales in 2025, a major piece of the $1.4 billion of crypto-related earnings he raked in. He has said he does not manage his financial interests, which are overseen by his children. The approval doesn’t allow World Liberty to open a traditional bank, but rather a national trust bank — a limited-purpose institution that would not make loans or accept federally insured