The World Liberty Financial (WLFI) project, affiliated with the family of the U.S. president, has received preliminary approval from the OCC (Office of the Comptroller of the Currency) to establish a trust bank. This event once again brings to the forefront the question of the intersection of interests between the political elite and the crypto industry.
The application review process took about seven months. Final approval will only be granted after meeting a number of conditions, including hiring an external auditor and maintaining an agreed level of capital. Notably, three key WLFI investors, including one of the president's sons, have already voluntarily limited their influence over the management of the future credit institution.
Banking charter boom under the new administration
An analysis of regulatory activity shows unprecedented acceleration. In the first 19 months of Donald Trump's second term, the OCC issued 22 banking licenses. For comparison: this is more than in the previous five years combined. Moreover, the majority of new approvals went not to traditional banks, but to fintech companies and digital asset market players, including giants such as Circle and Coinbase.
WLFI representatives emphasize that obtaining a federal charter is a step toward strengthening oversight. According to them, the future bank will become the custodian of reserves for the USD1 stablecoin, which should increase transparency and trust in the project. The company insists: they are not avoiding regulation, but rather moving under the constant supervision of the OCC with weekly reserve reporting and independent audits of USD1 operations.
Political undertones and criticism
However, Democrats and a number of experts see a clear conflict of interest in this deal. Critics fear that the project's close ties to the White House amid a lenient regulatory climate create a dangerous precedent. Opinions are being voiced that a "stablecoin" backed by government approval could be used as a tool of political influence. Aaron Klein, a senior fellow at the Brookings Institution, expressed concern that people are developing a false sense of government support for private stablecoins.
Public opinion polls also record tension: 63% of Americans consider it inappropriate for the president to earn income from cryptocurrency activities.
My comment: It is obvious that the Trump administration is deliberately dismantling bureaucratic barriers that have restrained the entry of new players into the banking system for decades. For the market, this is certainly a positive signal, accelerating the institutionalization of digital assets. However, the mixing of government functions and the private interests of the president's family is a ticking time bomb. If the next political cycle brings a change of power, we may witness not just a policy review, but harsh legal proceedings that could set the industry back for a long time. Regulatory clarity should not be achieved at the cost of ethical compromises.