The World Liberty Financial (WLFI) project, closely tied to the family of the current U.S. president, has received conditional approval from the OCC (Office of the Comptroller of the Currency) to establish a trust bank. This event marks a significant milestone in the institutionalization of the cryptocurrency sector, but it also raises pressing questions about the boundaries between business and state power.
The review of the application took seven months—a period that can be considered moderate for such a complex structure. For final approval, WLFI must meet a number of conditions: hire an independent external auditor and ensure compliance with the regulator's capital requirements. Notably, three key investors, including one of the president's sons, have already agreed to limit their involvement in managing the future bank—a step clearly aimed at mitigating criticism.
Of particular interest is the statistics: over the first 19 months of Trump's second term, the OCC approved 22 banking licenses. For comparison, over the previous five years, this figure was lower. It is evident that the administration has set a course for accelerated integration of digital assets into the traditional financial system. Most of the new permits went to fintech players and crypto companies, among which Circle and Coinbase stand out.
The WLFI project itself positions obtaining a federal charter as a way to strengthen regulatory oversight and expand the use of its own stablecoin, USD1. According to the team's design, the bank will act as custodian of the reserves backing the stablecoin. However, it is precisely this connection to the head of state that causes the greatest concern among Democrats and independent experts.
Aaron Klein, a senior fellow at the Brookings Institution, expressed concern: "Creating the illusion that stablecoins are backed by the government raises real concerns." Indeed, the risk that a private project could be perceived as an instrument with tacit support from the White House creates a dangerous precedent for trust in the financial system.
In response to criticism, company representative David Waxman emphasized that the project is not avoiding oversight but, on the contrary, is moving under the permanent supervision of the OCC. He assured that anti-money laundering and consumer protection requirements will remain in force, and weekly reports on USD1 reserves will undergo independent audits.
It is worth recalling that, according to a Reuters poll, 63% of Americans consider the president's income from cryptocurrencies inappropriate. This indicates that public opinion is extremely sensitive to such intersections of interests.
My analysis: The WLFI situation is a classic example of how innovation outpaces legislation. Technically, creating such a bank is a logical step for developing stablecoin infrastructure. However, the political context inevitably casts a shadow over this process. In the long term, the market needs clear rules of the game that exclude even a hint of using regulatory leniency for personal gain. Otherwise, we risk facing a crisis of trust in the very idea of the digital dollar.