World Liberty Financial’s Federal Trust Banking Charter Application
World Liberty Financial is on the verge of obtaining a federal trust banking charter, with insiders from the Office of the Comptroller of the Currency (OCC) indicating that a positive outcome for the Trump-affiliated crypto firm is anticipated soon. A report from NOTUS highlights that OCC Comptroller Jonathan Gould is set to make an announcement regarding the firm’s application within days.
Insider Confidence and Industry Context
Sources familiar with the situation—specifically, two former OCC officials who chose to remain unnamed—have expressed confidence in the application’s approval, with one of them deeming it “inconceivable” that it could be turned down. The company, which established a trust in the U.S. earlier this year, submitted its charter application shortly after the OCC provided conditional approvals to other cryptocurrency businesses such as Ripple, Circle, and BitGo.
Potential Implications of the Charter
If granted the charter, World Liberty would be empowered to manage reserves, issue and redeem its USD1 stablecoin, and provide services including digital asset custody and trading, all under federal regulation. This status would streamline operations by allowing World Liberty to operate under a singular national authority, rather than adhering to various state regulations. It would also eliminate the dependence on intermediaries currently handling stablecoin issuance, a service performed by BitGo to date.
Political Concerns and Conflicts of Interest
As the decision looms, Democratic representatives have expressed apprehensions regarding the potential conflicts of interest stemming from President Donald Trump’s ties to the project. Public records reveal that Trump and his family played a role in establishing World Liberty before the 2024 election cycle, with roughly 75% of the WLFI token proceeds funneled to DT Marks DEFI LLC, which is under Trump’s control.
A June report from Reuters revealed that the Trump family has netted over $2.3 billion from four separate cryptocurrency ventures since the start of his second presidential term, with World Liberty being a significant contributor to this figure. Concerns over the OCC’s decision-making process arose early in Congress, particularly at a Senate Banking Committee hearing in February. During this session, Senator Elizabeth Warren pressed Gould to reconsider or postpone the application due to perceived national security threats and conflicts of interest associated with Trump.
In response to Warren’s inquiries, Gould asserted that the application would undergo standard processing in line with legal obligations and claimed that he faced no political pressure other than from Warren herself.
Warren countered by stating that giving the go-ahead to World Liberty would facilitate corrupt practices tied to the presidency.
Scrutiny and Investigations
As scrutiny of the application deepened, Representative Gregory Meeks questioned Gould’s autonomy in the decision-making process during a House Financial Services Committee hearing in June, dubbing him a “Trump fixer.” Gould dismissed these accusations, affirming that the OCC adhered to legal and ethical guidelines throughout the review process.
Warren has raised broader concerns regarding the OCC’s handling of crypto trust charters. In May, she sent a letter to Gould arguing that the charters granted to several cryptocurrency firms may lack adherence to the National Bank Act, suggesting that these firms might exceed the authorities allowed under federal banking regulations. Gould has maintained that charter evaluations are conducted without political bias and that the activities of digital asset firms can align with existing banking laws when they are properly monitored.
Separate investigations by Congress have looked into World Liberty’s financial connections as well, including a significant $500 million investment from the UAE, which was reported to have ties to a larger $2 billion transaction related to Binance. Previous concerns regarding foreign investment surfaced in February when Warren pointed to claims that a senior UAE official acquired a major stake in World Liberty, seeking clarity on whether appropriate disclosures had been made to the regulatory bodies. Gould stated he would not delve into specifics regarding ongoing applications but reassured that the OCC would stick to established review protocols.
White House Response
The White House has dismissed allegations of conflicts of interest regarding Trump’s involvement, asserting that his financial interests are placed in a trust managed by his children, therefore negating any potential conflict.
