Editor's Note: When crypto capital and political power intertwine on the same regulatory track, controversy often proves more penetrating than the technology itself.
The controversy surrounding the Trump family's crypto enterprise, World Liberty Financial (WLF), applying for a U.S. bank license has rapidly evolved from a routine financial approval process into a political issue involving conflicts of interest, foreign capital influence, and national security. A $5 billion investment from an Abu Dhabi royal family member, potential AI chip export arrangements, a stablecoin business layout, and the President's disclosed tens of millions of dollars in income have turned this hearing into far more than an industry matter. It has become a stress test for institutional boundaries and regulatory independence.
The OCC emphasized it would "process according to procedure," while Democratic lawmakers questioned transparency and review standards. At a time when stablecoins are increasingly seeking "bank-like" pathways, WLF's application is not only about one company's compliance process but also reflects the challenge the U.S. faces in balancing digital financial competition, geopolitical capital games, and political ethics.
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A U.S. banking regulatory official refused to disclose specific information about the application for a U.S. bank license by the crypto enterprise owned by the Trump family. The enterprise had previously received a $5 billion investment from a royal family member in Abu Dhabi.
The head of the Office of the Comptroller of the Currency (OCC), responsible for issuing federal bank licenses, declined at a Senate Banking Committee hearing on Thursday to disclose details of World Liberty Financial's (WLF) application as requested by lawmakers and denied that President Donald Trump had exerted any influence over the approval process.
Democratic lawmakers demanded that the OCC clarify whether WLF disclosed in its application the sale of a 49% stake to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE National Security Advisor who also controls a vast business empire.
This transaction has further raised questions about whether the UAE has received policy "favors" due to its investment in a Trump family-controlled enterprise, including access to U.S. artificial intelligence chips, and whether there is a risk of related technology being transferred to China.
WLF denied that this $5 billion investment is linked to any chip acquisition arrangements. According to the company's website, Trump is listed as an "honorary co-founder." In his latest financial disclosure covering the 2024 period, Trump reported personal income of $57.3 million from WLF.
Democratic progressive figure Elizabeth Warren challenged OCC Acting Comptroller Jonathan Gould at the hearing over WLF's application, stating that given the Trump family's stake, the application posed an obvious risk of conflict of interest.
WLFI submitted the bank license application in early January this year through an entity named World Liberty Trust Company. Details of its equity deal with the UAE side, finalized just days before the presidential inauguration, were revealed by the media earlier this month.
Warren questioned Gould on whether WLF had disclosed in its application that Sheikh Tahnoon had become a "major shareholder of the proposed bank." Gould responded that he would not comment on any specific application. Warren further warned that if the license were ultimately approved, it would constitute "one of the most shameful corruption scandals in American history."
In response, Gould stated that the OCC would "review all applications according to established procedures" and retorted that the only "political pressure" he felt was from Warren herself.
Democratic Senator Chris Van Hollen also pressed on whether the OCC would consider in its review that Abu Dhabi investment vehicle MGX used $2 billion last year, involving WLF's stablecoin, to participate in acquiring shares of crypto exchange Binance. Another Democratic member, Andrew Kim, asked if the OCC had an enhanced review mechanism for applications involving foreign government officials that could impact national security. Gould said he would respond in writing later.
WLF responded that Democrats are "politicizing the matter" and smearing a U.S. private company undergoing strict regulatory scrutiny with "baseless allegations." The company emphasized that World Liberty Trust Company has submitted all necessary disclosure documents as required by regulators. Currently, five companies are in line with the OCC applying for national bank licenses, with WLF being one of them; crypto firms Coinbase and Laser Digital are also among the applicants.
If approved, WLF would be able to issue and hold reserves for its USD1 stablecoin itself. USD1 is a crypto token pegged 1:1 to the U.S. dollar; currently, related custody and issuance services are provided by third parties. According to disclosures, WLF will not engage in lending or accept public deposits in the future.
The proposed management includes WLF co-founder Zac Witkoff, whose father is the current U.S. Middle East envoy and real estate billionaire Steve Witkoff, and Jeffrey Weiner, CEO of Integrity Automotive Holdings. The latter heads an automotive dealership group operating in New York, New Jersey, and Connecticut.
Earlier this week, some founders' social media accounts were attacked, causing USD1 to briefly depeg. WLF subsequently stated that USD1 is "perfectly secure" and has stabilized.
