World Liberty Financial (WLFI), a company 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 step opens new horizons for the project, but at the same time intensifies political tensions around the cryptocurrency business.
The application review process took seven months — a considerable period, indicating a thorough examination by the regulator. However, for final approval, WLFI will need to meet a number of conditions: hire an independent external auditor and maintain a certain level of capital. Notably, three key investors, including one of the president's sons, have already agreed to voluntarily limit their influence over the management of the future bank — likely to reduce the level of criticism regarding conflicts of interest.
Banking license boom under Trump
Against the backdrop of this event, a broader trend is worth noting: during the first 19 months of Trump's second term, the OCC approved 22 banking license applications. That is more than in the previous five years combined. Clearly, the administration has taken a course toward liberalizing the banking sector, with fintech companies and firms working with digital assets, including Circle and Coinbase, becoming the main beneficiaries.
WLFI emphasizes that obtaining a federal charter is not an escape from oversight, but rather a transition to permanent supervision by the OCC. According to the team's plan, the future bank will hold reserves backing the USD1 stablecoin, which should increase trust in the asset and expand its use. Weekly reports on reserves and operations will undergo independent verification.
Political undertones and criticism
However, Democrats and part of the expert community see this story as an alarming signal. The essence of the complaints boils down to the fact that WLFI's "stablecoin" could become a tool for gaining favor with the White House amid a softer approach from regulators. Aaron Klein, a senior fellow at the Brookings Institution, expressed concern that people might develop an "illusion that stablecoins are backed by the state," which creates systemic risks.
Company representative David Waxman, in response to criticism, insists: the project is not avoiding oversight, but rather submitting to it — including requirements for anti-money laundering and consumer protection.
My view: the WLFI situation is a classic example of how political capital intersects with financial innovation. On the one hand, strengthening stablecoin regulation through a banking license is a positive step for the entire industry. On the other hand, the very connection to the president's family creates reputational risks for the project that could deter institutional investors. Earlier polls showed that 63% of Americans consider Trump's income from cryptocurrencies inappropriate, and this figure is unlikely to change after such news. The market needs transparency, not the illusion of state support.