The cryptocurrency project World Liberty Financial (WLFI), closely tied to the family of the current U.S. president, has received preliminary approval from the OCC (Office of the Comptroller of the Currency) to establish a trust bank. This event undoubtedly marks an important milestone for the industry, but at the same time it adds fuel to the fire of the debate over the boundaries between business and politics.
The application review process took about seven months. To obtain final approval, the company will need to meet a number of conditions, including hiring an external auditor and maintaining a certain level of capital. Notably, three key WLFI investors, including one of the president's sons, have already agreed to voluntarily limit their influence over the management of the future bank—a step aimed at mitigating criticism.
The context gives this news particular resonance: in the first 19 months of Trump's second term, the regulator approved 22 banking licenses. For comparison, that is more than in the previous five years combined. Moreover, most of the new permits went to fintech companies and digital asset market players, including giants such as Circle and Coinbase. Clearly, the U.S. regulator has set a course toward accelerated integration of the crypto industry into the traditional financial system.
WLFI emphasizes that obtaining a federal charter is not a retreat from oversight, but rather a transition to permanent and strict control by the OCC. According to the team's plan, the future bank will serve as custodian of the reserves backing the USD1 stablecoin, which should expand its use and strengthen confidence in the asset.
However, Democrats and a number of experts express serious concern. In their view, the project's close connection to the presidential family creates grounds for a conflict of interest. There are fears that the "stablecoin" could become a tool for gaining favor with the White House, especially amid the easing of regulatory policy. Aaron Klein, a senior fellow at the Brookings Institution, warns of the risks of "creating the illusion of government support for stablecoins."
In response to criticism, WLFI representative David Waxman states: the project is not avoiding oversight but embracing it. The company commits to complying with all anti-money laundering (AML) requirements and consumer protection rules. Moreover, weekly reports on reserves and USD1 operations will be subject to independent audit.
It is worth recalling that according to recent polls, 63% of Americans consider it inappropriate for the president to earn income from cryptocurrency activities. This indicates that public opinion is extremely skeptical, and any step by WLFI will be examined under a microscope.
My analysis: The issuance of the license itself is a positive signal for the entire market, demonstrating that crypto banking is becoming mainstream. However, in this case, we are witnessing a dangerous precedent where political capital and the financial interests of the first family are intertwined so tightly. Even with formal compliance with all norms, a shadow of doubt about the regulator's impartiality will remain. This could cause long-term reputational damage not only to WLFI but also to the entire industry, which is already fighting for the trust of traditional institutions.