The ambitious crypto project World Liberty Financial (WLFI), closely tied to the family of the current U.S. president, has received preliminary "approval" from the Office of the Comptroller of the Currency (OCC) to establish a trust bank. This event undoubtedly marks an important milestone in the institutionalization of digital assets, but it also adds fuel to the fire of political disputes surrounding industry regulation.
The application review process took seven months—a considerable period, indicating thorough scrutiny by the regulator. However, to obtain final approval, WLFI must meet a number of conditions: hire an independent auditor and maintain capital at a set level. Notably, three key investors, including one of the president's sons, voluntarily agreed to limit their influence over the management of the future bank—a step clearly aimed at mitigating criticism over conflicts of interest.
The Banking License Boom in the Trump Era
The observed trend extends far beyond a single project. In the first 19 months of the administration's second term, the OCC approved 22 banking license applications. For comparison: that is more than in the previous five years combined. Clearly, Washington's regulatory policy has undergone a radical shift toward supporting innovation in the financial sector. The bulk of new approvals went to fintech companies and players working with digital assets, among which Circle and Coinbase stand out.
WLFI itself claims that obtaining a federal charter is not a privilege but a deliberate step toward strengthening oversight. According to the team's vision, the future bank will serve as the custodian of reserves backing their stablecoin USD1, which should increase trust in the asset and expand its use.
Political Undertones and Criticism
However, Democrats and a number of independent experts see an alarming signal in this story. Critics fear that a "stablecoin" affiliated with the president's family could become a tool of political influence, and the regulators' lenient approach—a way to gain favor with the White House. Aaron Klein of the Brookings Institution expressed concern that such projects "create an illusion of government support for stablecoins," which could have serious consequences in the event of a crisis.
In response to these accusations, WLFI representative David Waxman counters: the company is not avoiding oversight but, on the contrary, is moving under the OCC's permanent supervision, committing to comply with all anti-money laundering and consumer protection requirements. Moreover, weekly reports on USD1 reserves will undergo independent verification, adding transparency.
My view as an analyst: The situation around WLFI is a classic case demonstrating the dual perception of the crypto industry. On one hand, obtaining a banking license is a powerful signal of market maturity and its integration into the traditional financial system. On the other, mixing business and politics at such a high level creates reputational risks for the entire sector. Even with impeccable compliance with all norms, the shadow of a "family project" will haunt WLFI, and polls show that 63% of Americans already view the president's income from cryptocurrencies negatively. This could become a serious brake on the mass adoption of digital assets in the long term.