The ambitious cryptocurrency project World Liberty Financial (WLFI), closely tied to the family of the U.S. president, has taken a significant step forward by receiving conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a trust bank. This event marks an important stage in the institutionalization of digital assets, but it simultaneously raises sharp questions about the boundaries between business and state power.
The application review process took seven months—a period that can be considered standard for such a complex procedure. However, for final approval, WLFI will need to fulfill a number of mandatory conditions, including hiring an external auditor and maintaining a strictly defined level of capital. Notably, three key investors, including one of the current president's sons, have voluntarily agreed to limit their influence over the management of the future bank—a step clearly aimed at mitigating regulatory and reputational risks.
Unprecedented regulatory activity
The most telling factor is the overall context. During the first 19 months of Donald Trump's second term, the OCC approved 22 banking license applications. For comparison, that is more than in the previous five years combined. Such a surge in activity clearly demonstrates a shift toward greater favorability for fintech and the crypto industry. Most of the new approvals went precisely to companies working with digital assets, including giants such as Circle and Coinbase.
The USD1 stablecoin as a bone of contention
Representatives of WLFI claim that obtaining a federal charter will strengthen regulatory oversight and help expand the use of its own stablecoin, USD1. According to their plan, the future bank will hold the reserve assets that ensure the coin's stability. However, it is precisely this connection to the presidential family that raises the greatest concern among Democrats and independent experts. There are fears that the "stablecoin" could become a tool for gaining special favor from the White House amid the easing of regulatory policy.
Aaron Klein, a senior fellow at the Brookings Institution, expressed a more fundamental concern: creating the illusion among people that stablecoins are backed by the state carries real systemic risks. In response to criticism, WLFI representative David Waxman counters that the company is not avoiding oversight but, on the contrary, is moving under the OCC's permanent supervision. He emphasizes that the project will strictly comply with anti-money laundering requirements and consumer protection rules, and that weekly reports on USD1 reserves will undergo independent verification.
Significantly, this conflict of interest is already being reflected in public opinion. A recent Reuters poll showed that 63% of Americans consider Trump's income from cryptocurrencies inappropriate. This is a serious signal that should not be ignored.
My analysis: The issuance of the license itself is a positive step for legitimizing the crypto industry, but in this case, it creates a dangerous precedent. Even with formal compliance with all norms, the shadow of a conflict of interest will haunt the project. In the long term, this could damage not only WLFI's reputation but also the entire market if regulators tighten rules in the future due to the political undertones of this decision.