The Office of the Comptroller of the Currency (OCC) has granted conditional approval for World Liberty Trust Co. to operate as a national trust bank, a move that would allow the Trump family-backed crypto venture to issue its own stablecoin. The approval, posted on the OCC's website Friday, marks a significant step for the company, though final authorization hinges on meeting all preopening requirements, with the regulator reserving the right to modify, suspend, or rescind the approval.
World Liberty Trust Co. is sponsored by World Liberty Financial, an entity in which the president's son, Donald Trump Jr., and other family members hold a 38% stake through a family-sponsored entity, according to a company disclosure. The proposed bank would be headquartered in Bay Harbor Islands, Florida, and the charter would permit it to directly issue and redeem its USD1 stablecoin—a digital token pegged to the U.S. dollar—under OCC oversight.
Zach Witkoff, president of World Liberty Trust Co. and son of presidential special envoy Steve Witkoff, welcomed the decision, emphasizing the importance of regulatory rigor. "Rigorous oversight, institutional controls and clear accountability are how stablecoins become trusted financial infrastructure," Witkoff wrote on social media. "Our ambition is clear: to build the most trusted and widely used digital dollar in the world while strengthening the role of the U.S. dollar across the global economy."
The approval has drawn sharp criticism from Senate Democrats, led by Banking Committee Ranking Member Elizabeth Warren, who had urged the OCC to reject the application. Warren called the approval "the most brazen act of self-dealing our financial system has ever seen" in a statement on social media. On Friday, Warren and ten other Senate Democrats introduced the "Ending Presidential Corruption in Banking Act," which would bar federal regulators from approving banks owned by the president, his family, or other top government officials.
OCC Senior Deputy Comptroller Stephen Lybarger addressed conflict-of-interest concerns in his approval letter. "The Comptroller and staff acted consistently with their statutory duties and ethical obligations with respect to the Application," Lybarger wrote. "Approvals of applications such as this are made under authority delegated by the Comptroller to career staff."
The OCC's decision comes amid broader debates over cryptocurrency regulation and the role of digital assets in the U.S. financial system. The Trump administration has taken a friendly stance toward crypto, with the president vowing to make the U.S. a global hub for digital currencies. This approval could set a precedent for other politically connected ventures seeking banking charters, raising questions about the intersection of politics and finance.
Critics argue that the Trump family's direct financial interest in World Liberty Financial creates an unavoidable conflict, especially given the president's influence over federal agencies. Supporters, however, see the approval as a routine regulatory step that could bolster the legitimacy of stablecoins and enhance the dollar's global standing. The OCC's conditional approval will now undergo further review, with the company required to meet all preopening conditions before launching operations.
As the political and legal battles unfold, the future of World Liberty Trust Co. remains uncertain. The Senate bill proposed by Democrats faces an uphill climb in a Republican-controlled Congress, but the controversy highlights the growing scrutiny of ties between the Trump family and financial ventures. For now, the OCC's decision stands as a landmark moment in the evolving relationship between cryptocurrency and federal banking oversight.
