Elizabeth Warren asks OCC To Pause WLFI Bank Review Over Trump Ties

TLDR

• Warren asked the OCC to delay WLFI’s bank charter until Trump cuts financial ties.
• WLFI’s bank application comes under new OCC rules starting January 18.
• Trump’s family has financial roles in WLFI, including stablecoin operations.
• Warren gave the OCC until January 20 to respond with a written commitment.

A high-stakes clash between politics and crypto regulation is unfolding as Senator Elizabeth Warren calls on the OCC to pause its review of a national bank charter application by WLFI, a crypto firm tied to President Donald Trump. Citing unresolved financial conflicts, Warren warns that approving the application could place a sitting president in direct oversight of his own financial interests, raising serious concerns about ethics and regulatory integrity.

Charter Review Raises Ethical Concerns

Senator Elizabeth Warren has called on the Office of the Comptroller of the Currency (OCC) to delay reviewing a national bank charter application by WLFI, a crypto company connected to President Donald Trump. In a letter sent on January 13, Warren cited unresolved financial conflicts involving the president and his family.

WLFI, also known as World Liberty Financial, seeks to operate a nationally chartered trust bank through its subsidiary WLTC Holdings LLC. The firm aims to manage stablecoin activities, including issuance and custody of its USD1 stablecoin. Warren warned that approving this application could lead to a situation where a presidential appointee regulates a firm financially tied to the president.

Trump’s Financial Link to WLFI

Trump, who is listed as a “co-founder emeritus” and chief crypto advocate at WLFI, has long-standing financial connections to the company. His sons Eric and Donald Trump Jr. are listed as co-founders, and Barron Trump holds the title of “DeFi visionary.” Trump’s associate Steve Witkoff is also named as a co-founder.

Warren raised concerns that if the OCC proceeds with the review, it could result in the President overseeing a regulator that manages his own business. This situation, she wrote, “risks public trust in banking oversight.” The senator also pointed out that such a case is unprecedented in U.S. history.

Stablecoin Oversight Shifts to OCC

The passage of the GENIUS Act recently moved oversight of stablecoins under the OCC’s authority. With new rules taking effect on January 18, Warren said the OCC’s review of WLFI now falls under its jurisdiction. This change, she argued, makes earlier objections by the agency—when it called the issue “hypothetical”—no longer valid.

Warren noted that WLFI’s stablecoin, USD1, is available on major platforms including Coinbase and Kraken. If approved, WLFI’s bank would have the ability to issue and redeem stablecoins, hold reserves, and offer digital asset custody services. These services would fall under federal regulation, potentially giving the firm a competitive edge.

Warren Seeks Written Commitment by January 20

In her letter to Comptroller Jonathan Gould, Warren requested that the OCC pause its review until President Trump divests fully from the company. She asked the OCC to submit a written commitment by January 20 confirming the delay.

Warren, who is the most senior Democrat on the Senate Banking Committee, also linked her demand to pending legislation related to crypto market structure. She said existing drafts do not resolve the issue of presidential business ties to digital asset firms.

The OCC has not yet issued a public response to Warren’s letter. The agency has approved other crypto-related trust bank applications in recent months, but Warren warned that this situation is different due to the direct link to the President.

WLFI’s Charter Application and Market Movement

WLFI filed the application for its national trust bank earlier this month. If approved, the bank will focus on stablecoin operations and other crypto financial services. The application has attracted attention from both lawmakers and market participants.

Following the news, WLFI’s token rose 8.7% in 24 hours to $0.1832. Online investor platforms such as Stocktwits recorded a shift in sentiment from “bullish” to “extremely bullish,” with increased market activity reported.

The Senate Banking Committee is expected to review crypto market structure bills this week. The issue of presidential involvement in digital asset companies may feature during the discussions.

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