US OCC Conditionally Approves Trust Bank Charter for Trump-Linked World Liberty, Reviving Conflict Concerns

The Office of the Comptroller of the Currency has conditionally approved an application by World Liberty Financial, a crypto firm linked to President Donald Trump’s family, to establish a national trust bank, reviving concerns over potential conflicts of interest.

Cointelegraph reported on August 17 that the OCC had granted conditional approval for the charter. If World Liberty satisfies regulatory and policy requirements, it will be allowed to operate as World Liberty Trust Company, National Association.

In its application, World Liberty said it plans to issue a US dollar-backed stablecoin and provide custody services for digital assets related to its own stablecoin, USD1.

The decision has drawn criticism in Washington over possible conflicts of interest. Trump and his three sons are linked to World Liberty, and entities tied to the Trump family control 38% of the company, according to World Liberty’s website. Jonathan Gould, who leads the OCC, was nominated by Trump last year.

The OCC said the comptroller and agency staff acted consistently with their legal obligations and ethical responsibilities during the review. Gould had earlier told Senator Elizabeth Warren that the charter review would proceed through a nonpolitical and nonpartisan process.

Warren sharply criticized the decision after the approval and said she had introduced legislation to limit a president’s financial interests. Ten senators, including Warren, introduced the Ending Presidential Corruption in Banking Act following the OCC’s decision.

Since the Trump administration took office, the OCC has continued approving trust bank charters for crypto firms seeking entry into the US financial system. In December last year, it approved or conditionally approved related applications from Circle, Ripple Labs, Crypto.com and Coinbase.

World Liberty’s ties to capital from the United Arab Emirates have also remained a source of controversy in Congress. An Abu Dhabi investment firm backed by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan invested $500 million in January last year to acquire a 49% stake in World Liberty, according to the report.

Another UAE investment firm, MGX, invested $2 billion in Binance using World Liberty’s USD1. Trump later pardoned former Binance Chief Executive Officer Changpeng Zhao, prompting some lawmakers to call for an investigation into whether World Liberty’s ties to foreign capital influenced US government policy.

The White House has repeatedly said Trump’s investments do not pose a conflict of interest.