Trump's World Liberty Financial Jumps Political Hoops as OCC Prepares Trust Bank Approval

The Trump-endorsed crypto firm World Liberty Financial seems to be inching towards a huge regulatory win as the OCC prepares to decide on its application for a national trust bank charter.According to a NOTUS report, OCC Comptroller Jonathan Gould is expected to announce a decision on WLFI’s application in the coming days. Two former OCC officials shared that the chances of rejection are almost "inconceivable."

Why the Trust Bank Charter matters for World Liberty Financial

This announcement is a big boost for the company, following its application earlier this year after establishing its trust company in the United States. This comes after a series of conditional approvals by the OCC to some crypto firms, including Circle, Ripple, and BitGo.

The granting of this charter will permit the company to issue and redeem its USD1 stablecoin. The firm will also be allowed to manage reserves, provide crypto custody, and make payments and settlements. Additionally, the company will no longer have to rely on BitGo for USD1 stablecoin transactions.

The move could also be very beneficial for the stablecoin in attracting institutions such as banks and companies. In other words, this will directly contribute to the growth of World Liberty Financial’s payment systems and its stablecoin operations.

This update comes just as the adoption of USD1 is on the rise. Recently, UFC fighters at the White House UFC Freedom 250 were paid $250,000 in performance bonuses in this stablecoin.

WLFI shrugs off political scrutiny as business expands

The expected OCC approval is good news for World Liberty Financial, but this won't sit well within the spheres of the US political system.

The backlash started just as investigators highlighted that Donald Trump and members of his family helped launch the firm just before the 2024 presidential election, suggesting it was used to funnel capital to fund his reelection. The filings also show that 75% of the money raised from WLFI token sales went to DT Marks DEFI LLC, a company controlled by Trump.

According to reports, the Trump family earned more than $2.3 billion from its four crypto ventures since the start of his second term, with the crypto firm contributing the largest share.

Several lawmakers have since then questioned whether the OCC should approve the application because of Trump's connection to the company. For instance, Corey Frayer, the director of investor protection for the Consumer Federation of America, attacked President Trump. calling the move "outrageous."

In addition, at a Senate hearing in February, Senator Elizabeth Warren asked Gould not to approve or even consider this application because it raises issues related to a potential conflict of interest and national security concerns. 

Gould replied, saying that OCC would review the application in the same manner as all other applications and would ensure compliance with the law.

Just before that, lawmakers raised alarms about the business after a January Wall Street Journal investigation highlighted that about $500 million was invested by the UAE and another $2 billion was invested with Binance, both associated with World Liberty Financial.

However, this political scrutiny has not stopped the business's growth, as the firm continues to expand its operations.