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

A Trump-appointed regulatory body has approved a banking license for World Liberty Financial, a cryptocurrency company linked to former President Donald Trump. The Office of the Comptroller of the Currency (OCC) granted the national trust bank charter, allowing the firm to engage in specific financial activities while operating under federal oversight. This decision comes amid ongoing scrutiny over potential conflicts of interest due to Trump's financial ties to the company. The approval was announced following a review process that included assessments of compliance with regulatory standards. World Liberty Financial, which operates a USD1 stablecoin, will now be able to issue and redeem its digital currency directly, manage the reserves supporting it, and provide digital asset custody services without intermediaries. These capabilities position the company to expand its operations across state lines more efficiently than before, though it will not be permitted to take deposits or make loans. Donald Sherman, CEO of Citizens for Responsibility and Ethics in Washington, criticized the move as a clear instance of the president benefiting personally from his governmental role. He argued that this action undermines public trust and exacerbates concerns about the stability of traditional banking systems. According to Sherman, the approval appears to prioritize the interests of wealthy individuals over the broader financial security of ordinary citizens. World Liberty Financial maintains that there is no direct involvement by Trump in the management of the company. The organization previously dismissed allegations of conflicts of interest, asserting that Trump does not oversee its operations and that none of its leadership or staff are employed by the federal government. The White House has echoed these claims, stating that Trump has no role in business dealings that might interfere with his official duties. Despite these assurances, Trump and his family retain significant ownership stakes in World Liberty Financial. DT Marks DEFI LLC, an entity associated with Trump and several members of his family, holds approximately 38% of the holding company controlling the firm. Additionally, the entity and Trump family members possess around 22.5 billion governance tokens within the company. In 2025, Trump reported earning nearly $600 million from the sale of World Liberty tokens and equities, contributing substantially to his overall crypto-related income of about $1.4 billion. While the new charter does not permit World Liberty to function as a traditional bank, it offers notable advantages. As a national trust bank, the company can leverage federal supervision to enhance its credibility among clients and investors. This status may also facilitate greater adoption of the USD1 stablecoin, potentially increasing its utility and reach within the financial sector. This approval marks another step in the expansion of regulatory support for cryptocurrency firms under the current administration. Similar licenses have been issued to other prominent companies, including Circle, Ripple, and Coinbase, indicating a growing trend toward integrating blockchain-based services into mainstream finance. The implications of this shift remain to be fully realized, but the approval underscores the evolving landscape of financial regulation in the United States.