The World Liberty Financial (WLFI) project, closely tied to the family of the 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 a significant milestone in the institutionalization of crypto-finance, but it also adds fuel to the fire of political disputes surrounding digital assets.
The review of the application took seven months — a considerable period, indicating a thorough examination. However, for the final "green light," the company will need to meet a number of conditions: hire an external auditor and maintain a certain level of capital. Notably, three WLFI investors, including one of the president's sons, voluntarily agreed to limit their influence over the management of the future bank. This is a clear attempt to reduce the intensity of criticism regarding conflicts of interest.
The figures I see in the regulator's reporting are telling: over the first 19 months of Trump's second term, the OCC approved 22 banking license applications. For comparison, this is more than in the previous five years combined. Moreover, the bulk of new approvals went to fintech companies and firms working with digital assets, including giants such as Circle and Coinbase. It is evident that the administration has set a course for the accelerated integration of the crypto industry into the traditional banking system.
WLFI itself justifies obtaining the charter by seeking to strengthen regulatory oversight and expand the use of its stablecoin USD1. As conceived, the future bank would be required to hold the reserve assets backing this "stablecoin." However, this raises serious questions among Democrats and a number of experts. Concerns boil down to the possibility that USD1 could become a tool for gaining favor with the White House, especially amid a softer approach from regulators. As Aaron Klein, a senior fellow at the Brookings Institution, aptly put it, "creating the illusion that stablecoins are backed by the government raises real concerns."
Company representative David Wacksman counters: the firm is not avoiding oversight but, on the contrary, is moving under the constant supervision of the OCC. The project commits to complying with anti-money laundering and consumer protection requirements, and weekly reports on USD1 reserves will undergo independent verification. That sounds encouraging, but how well this will be implemented in practice remains to be seen.
Let me remind you that, according to polls, 63% of Americans consider Trump's income from cryptocurrencies inappropriate. This creates an explosive political backdrop around any step taken by WLFI.
My analysis: The situation is twofold. On the one hand, the accelerated issuance of licenses is a powerful signal to the market about the legitimization of crypto-banking in the United States. On the other hand, the WLFI precedent creates a dangerous narrative of "family business" at the highest state level. If the OCC continues at the same pace but without proper transparency regarding projects connected to top officials, trust in regulatory reform could be undermined. Investors should closely watch not only the USD1 exchange rate but also the political consequences of this decision.