World Liberty Financial (WLFI), a company linked to the Trump family, has received conditional approval from the OCC to establish a trust bank in the U.S., according to Bloomberg.
The application review took seven months. For final approval, the firm must hire an external auditor and maintain a set capital level. Three WLFI investors, including one of the president’s sons, have agreed to limit their influence over the future bank’s management.
Journalists noted that during the first 19 months of President Donald Trump’s second term, the regulator approved 22 bank charter applications—more than in the previous five years combined.
Most of the new approvals went to fintech companies and firms dealing with digital assets, including Circle and Coinbase.
Earlier in August, WLFI representatives stated that a federal charter would enhance regulatory oversight of the project and help expand the use of the USD1 stablecoin. According to the company, the future bank is expected to hold assets backing the stablecoin.
The project’s connection to President Donald Trump’s family has raised questions among Democrats. Bloomberg sources believe the “stablecoin” could be used to gain favor with the White House amid a more lenient regulatory approach.
According to Aaron Klein, a senior fellow at the Brookings Institution, “creating the illusion that stablecoins are government-backed raises real concerns.”
In response to the criticism, company representative David Wachsman emphasized that the firm is not avoiding oversight but is moving under the permanent supervision of the OCC. The project must still comply with anti-money laundering and consumer protection requirements, and weekly reports on reserves and USD1 transactions will undergo independent audits.
Previously, a Reuters poll showed that 63% of Americans found Trump’s cryptocurrency earnings inappropriate.
