The World Liberty Financial (WLFI) project, affiliated with the family of the current U.S. president, has received preliminary approval from the Office of the Comptroller of the Currency (OCC) to establish a trust bank. This is a landmark event that once again brings to the surface the painful topic for the American political elite of the intersection between business and state power.
The application review process took seven months — a considerable period, indicating a thorough examination. However, for final approval, WLFI must meet a number of conditions: hire an independent auditor and ensure compliance with the regulator's capital requirements. Notably, three investors, including one of the president's sons, have already agreed to voluntarily limit their influence over the management of the future credit institution. This step looks like an attempt to preemptively dismiss accusations of direct control by the Trump family.
Bank Charter Boom Under New OCC Leadership
The observed dynamics of license issuance are impressive. In the first 19 months of Trump's second term, the regulator approved 22 bank charter applications. For comparison: this is more than in the previous five years combined. It is obvious that the administration has set a course for a sharp liberalization of the banking sector, especially regarding fintech and digital assets. The majority of new permits went precisely to these categories of companies, including giants such as Circle and Coinbase.
The WLFI project itself positions obtaining a federal charter as a step toward strengthening oversight. According to company representatives, the future bank will hold reserves backing the USD1 stablecoin, and reporting will become more transparent. However, critics, mainly from the Democratic camp, have the opposite reaction. They see in the "stablecoin" a potential tool for political influence and obtaining preferences from the White House amid a lenient regulatory climate.
Experts express particular concern. As Aaron Klein, a senior fellow at the Brookings Institution, notes, creating the impression among investors that stablecoins have government support is an extremely dangerous illusion that could undermine trust in the financial system as a whole.
In response to criticism, WLFI representative David Waxman counters: the company is not avoiding oversight, but rather moving under the constant control of the OCC. The project will continue to comply with anti-money laundering requirements and consumer protection rules. Moreover, weekly reports on USD1 reserves will be subject to independent verification. Recall that earlier polls showed 63% of Americans consider it inappropriate for Trump to earn income from cryptocurrencies.
My analysis: The situation around WLFI is a classic case demonstrating how regulatory policy becomes a battlefield for market trust. On the one hand, accelerated license issuance stimulates innovation. On the other, it creates a precedent where the boundaries between state regulation and the private interests of top state officials become dangerously blurred. For the market, this is a signal: watch not only the rates, but also who exactly writes the rules of the game.