World Liberty Financial has moved closer to securing a federal trust bank charter, with former Office of the Comptroller of the Currency officials telling NOTUS that approval of the Trump-linked crypto firm’s application is now widely expected.
Summary
- World Liberty Financial is expected to receive a national trust bank charter from the OCC, according to a report citing former agency officials.
- Approval would allow the Trump backed crypto firm to issue and redeem its USD1 stablecoin under federal oversight.
- Democratic lawmakers have continued questioning the application, citing potential conflicts of interest and national security concerns.
According to a report from NOTUS, OCC Comptroller Jonathan Gould is expected to announce a decision on World Liberty Financial’s application in the coming days. Two former OCC staff members who spoke anonymously told the outlet that the application is likely to be approved, with one describing a rejection as “inconceivable.”
World Liberty established a U.S. trust company and applied for the charter in January, shortly after the OCC granted conditional approvals to several crypto firms including Circle, Ripple, and BitGo.
If approved, the charter would allow the company to issue and redeem its USD1 stablecoin, manage reserves, provide digital asset custody, and handle settlement and conversion services under federal supervision.
Federal trust bank status would also allow World Liberty to operate under a single national regulator instead of navigating multiple state-level frameworks. The approval would remove the need to rely on intermediaries for stablecoin issuance, a role currently performed by BitGo.
Political scrutiny intensifies around charter review
As the application nears a decision, Democratic lawmakers have continued raising concerns about potential conflicts of interest tied to President Donald Trump’s financial connection to the project.
Public disclosures show that Trump and members of his family helped launch World Liberty before the 2024 election. Those disclosures also indicate that 75% of proceeds from sales of the WLFI token are directed to DT Marks DEFI LLC, an entity controlled by Trump.
Reuters reported on June 9 that the Trump family has earned more than $2.3 billion from four crypto ventures since the start of Trump’s second term, with World Liberty accounting for the largest portion of those gains.
Questions surrounding the OCC review process have surfaced repeatedly in Congress. During a February Senate Banking Committee hearing, Senator Elizabeth Warren challenged Gould over the pending application and argued that the agency should reject or delay approval because of what she described as conflict-of-interest and national security concerns.
Responding at the hearing, Gould said the OCC would process the application according to its statutory obligations and added that the only political pressure he had experienced came from Warren herself. Warren replied that approving the application would amount to enabling presidential corruption.
Months later, scrutiny expanded beyond the application itself. During a June House Financial Services Committee hearing, Representative Gregory Meeks questioned whether Gould was acting independently or serving as a “Trump fixer.” Gould rejected the allegation and said the OCC was following both legal and ethics requirements while reviewing the request.
Warren broadens challenge to OCC crypto charters
The debate over World Liberty has unfolded alongside Warren’s criticism of the OCC’s approach to crypto trust banks more generally.
In a May letter to Gould, Warren argued that several crypto-related trust charters approved by the OCC may not comply with the National Bank Act. According to Bloomberg’s reporting on the letter, she questioned whether digital asset firms receiving national trust bank status were conducting activities beyond those permitted under federal banking law.
Gould has consistently defended the agency’s position, saying charter reviews are conducted on a nonpartisan basis and that crypto custody, settlement services, and certain transaction activities can fall within existing banking authorities when properly supervised.
Separate congressional inquiries have also examined World Liberty’s business relationships. Earlier this year, House lawmakers opened a probe into the firm’s USD1 stablecoin after reports tied a $500 million investment from the United Arab Emirates to the company and linked that investment to a separate $2 billion Binance-related transaction.
Questions about foreign ownership have surfaced before. During the February Senate hearing, Warren cited reporting that a senior UAE official had acquired a substantial stake in the venture and asked whether those interests had been properly disclosed in filings submitted to regulators. Gould declined to discuss the contents of any pending application but said the OCC would follow established review procedures.
The White House has rejected claims that Trump’s involvement creates a conflict of interest, stating that the president’s assets are held in a trust managed by his children and that no conflict exists.
Leave feedback about this