The Trump family-linked company World Liberty Financial ($WLFI) received conditional approval from the OCC to launch a trust bank in the United States. Bloomberg reports.
The application review took seven months. For final approval, the firm must hire an external auditor and maintain an established capital level. Three investors in $WLFI, including one of the president's sons, have agreed to limit their influence on the future bank's management.
Journalists noted that during the first 19 months of President Donald Trump's second term, the regulator approved 22 applications for banking licenses—more than in the previous five years combined.
Moreover, the majority of new permits went to fintech companies and firms working with digital assets, including Circle and Coinbase.
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Earlier in August, representatives of $WLFI stated that a federal charter would strengthen regulatory oversight of the project and help expand the use of the stablecoin $USD1. According to the company, the future bank is intended to hold the assets backing the stablecoin.
The project's connection to the family of US President Donald Trump has raised questions among Democrats. Sources familiar with the matter told Bloomberg that the 'stable coin' could become a tool for gaining favor with the White House amid a more lenient regulatory approach.
According to Aaron Klein, a senior fellow at the Brookings Institution, 'creating the illusion among people that stablecoins are backed by the state raises real concerns.'
In response to the criticism, company representative David Waxman emphasized that the firm is not evading oversight but is transitioning to ongoing OCC supervision. The project must still comply with anti-money laundering and consumer protection requirements, and weekly reports on reserves and operations with $USD1 will undergo independent verification.
Recall that a Reuters poll showed that 63% of Americans found Trump's income from cryptocurrency inappropriate.
Trump Received Over $1.4 Billion from Crypto Projects
