Trump-linked crypto venture World Liberty Trust granted bank status
A national bank regulator granted a wing of the Trump family's crypto business conditional approval to establish a bank charter, opening the door for larger clients.
Democratic lawmakers have expressed concerns over potential conflicts of interest following the granting of bank status to a component of the Trump family's cryptocurrency business. The Office of the Comptroller of the Currency (OCC) recently approved conditional approval for World Liberty Trust Co., a 38% owned entity linked to Donald J. Trump and his family, to issue stablecoin cryptocurrency tied to the U.S. dollar.
This marks the first instance in U.S. history where a company owned by the president's family has been granted bank status. World Liberty Financial, the listed sponsor, has traditionally relied on third-party crypto company BitGo to provide stable digital currency, but the approval allows the Trump family's business to offer the service directly.
The decision enables the Trump-linked venture to act as a bank, issuing digital currency to clients for transactions, with profits directed to the Trump family's crypto business. Clients would exchange U.S. dollars for the stablecoin, potentially leading to heightened profits for the Trump family's crypto business. The company has already secured significant investments, with a reported $5 billion in profits during its first days after going public.
President Trump made over $1.4 billion in revenue from his family's crypto ventures, according to his financial disclosures. Despite White House spokeswoman Anna Kelly's assertion that no conflict of interest exists, Democratic lawmakers, including Sen. Elizabeth Warren, have urged the OCC to halt approval of Trump-linked business ventures, describing the decision as unprecedented corruption.
Written by urgent.news from ABC News (US)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
