Trump family crypto firm granted conditional approval to establish a bank
The plan has sparked criticism from Democrats, who argue that granting bank status to a business affiliated with the Trump family poses a conflict of interest.
A trust company tied to the Trump family's cryptocurrency enterprise, World Liberty Financial, has been granted preliminary approval by the Treasury Department's Office of the Comptroller of the Currency (OCC) to establish its own bank. This development would enable the trust company, World Liberty Trust Company, to independently manage its stablecoins without relying on intermediaries.
The trust company is connected to World Liberty Financial, a business co-founded by Trump's sons in 2024. World Liberty Financial holds a 38% stake in the trust company, which is owned by an entity linked to Donald J. Trump and his family members. The plan has drawn criticism from Democrats, who argue that giving bank status to a business with ties to the Trump family could create a conflict of interest.
Professor Austin Campbell from New York University's Stern School of Business stated that this situation is unprecedented and raises concerns about the OCC's ability to oversee the business, given its connection to the president's family. Democratic Senator Elizabeth Warren accused the move of being a "brazen act of self-dealing" and pledged to introduce a bill to prevent the president, vice president, and their family members from owning or controlling a bank.
World Liberty Trust Company insists that safeguards have been put in place to keep the family away from the bank while Mr. Trump is in office. A spokesperson for the company said that its national charter will provide robust and permanent regulatory oversight from the OCC that will remain in place regardless of the Trump administration's end.
Critics argue that World Liberty Financial is seeking regulation and continuous oversight, not a way to avoid oversight. The White House and Trump Organization have not yet commented on the matter. While crypto has been a profitable sector for the president, with financial disclosures revealing he made at least $1.4 billion from crypto ventures last year, Trump has stated he is not involved in the day-to-day operations of his cryptocurrency business.
Nonetheless, World Liberty Trust Company still needs to fulfill several prerequisites before receiving final approval to operate as a bank.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
