The Office of the Comptroller of the Currency has conditionally approved a trust bank charter for World Liberty Trust Co., a venture with ties to the Trump family.

The Office of the Comptroller of the Currency (OCC), a Treasury Department regulatory body, has granted preliminary approval for a trust bank charter to World Liberty Trust Co. The venture is backed by President Donald Trump and his family, who maintain a significant financial interest in the company. While the company must meet further requirements for final approval, the decision has drawn criticism from Democrats and ethics watchdogs regarding potential conflicts of interest.

Regulatory Approval and Company Operations

The OCC’s conditional approval allows World Liberty Trust Co. to operate as a national trust bank, a limited-purpose institution that does not issue loans or accept federally insured deposits. According to company Chairman Zach Witkoff, the charter will enable the firm to manage its USD1 stablecoin under federal supervision. The company stated that the charter provides legal and financial advantages, such as the ability to issue and redeem its stablecoin directly and operate across state lines without relying on individual state regulators.

Conflict of Interest Concerns

Critics, including Senator Elizabeth Warren and the group Citizens for Responsibility and Ethics in Washington, have labeled the approval an act of self-dealing. In response to the decision, Senate Democrats introduced legislation that would prohibit regulators from approving banks controlled by the president, vice president, or other top government officials. World Liberty and the White House have rejected conflict allegations, stating that the president is not involved in managing the company's business deals.

Financial Interests and Regulatory Process

According to the company's website, an entity affiliated with the Trump family owns approximately 38 percent of the holding company that controls World Liberty Financial. Additionally, Trump family members hold 22.5 billion of the company's governance tokens. OCC official Stephen Lybarger stated that the agency followed established policies and procedures during the review, and a source familiar with the matter noted that the agency consulted with career government ethics officials during the evaluation.