The World Liberty Financial (WLFI) project, closely tied to Donald Trump's family, has received preliminary approval from the OCC (Office of the Comptroller of the Currency) to establish a trust bank. This decision is not just corporate news, but a marker of tectonic shifts in American digital asset regulation.
The review process took about seven months. To obtain final approval, WLFI must hire an independent auditor and ensure compliance with capital requirements. Notably, three key project investors, including one of the president's sons, have already agreed to voluntarily limit their influence over the future bank's management—a step clearly aimed at reducing reputational risks.
Regulatory boom amid the crypto boom
The numbers speak for themselves: in 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. The main beneficiaries have been fintech companies and crypto firms, including Circle and Coinbase. It is evident that the regulator has set a course for integrating digital assets into the traditional banking system at an unprecedented pace.
WLFI emphasizes that the federal charter is not just a status, but enhanced oversight. The project plans to use the bank to hold reserves backing its own stablecoin, USD1, which should strengthen confidence in the coin.
Political undertones and criticism
However, Democrats and independent experts see this as a direct threat. Aaron Klein from the Brookings Institution expresses concern: "Creating the illusion that stablecoins are backed by the state raises real concerns." The essence of the criticism is that the project could leverage its proximity to the White House to gain competitive advantages and weaken oversight.
WLFI representative David Wacksman counters: the company is not avoiding control but, on the contrary, is moving under constant OCC monitoring. Anti-money laundering (AML) and consumer protection requirements remain in force, and weekly reports on USD1 reserves will undergo independent verification.
It is worth recalling that polls show 63% of Americans consider it inappropriate for the president to earn income from cryptocurrency projects. This creates an extremely volatile mix of politics and finance.
My analysis: Obtaining the license is a double-edged sword for WLFI. On one hand, it legitimizes the project and opens access to institutional investors. On the other, it ties the USD1 stablecoin to Trump's political figure, making it highly vulnerable to political conditions. If the administration changes, such an asset could face intense regulatory pressure. In the long term, this is more of a risk than an advantage.