Federal regulators granted preliminary conditional approval for a national trust bank charter to World Liberty Trust Co., a crypto venture backed by President Donald Trump and his family. The decision allows the company to issue, redeem, and safeguard its USD1 stablecoin directly under federal oversight.
The Office of the Comptroller of the Currency issued a conditional letter approving the application for World Liberty Trust Co., marking one of the most direct official actions taken by the administration regarding the president’s private business interests. The charter does not authorize traditional consumer deposit-taking or lending. Instead, it creates a limited-purpose national trust bank designed to manage digital assets.
World Liberty Financial was co-founded in late 2024 by Trump, his three sons, and the Witkoff family. Company disclosures show that DT Marks DEFI LLC, an entity affiliated with the president and his family, owns about 38 percent of the holding company controlling World Liberty Financial.
Regulatory Framework and Stablecoin Operations
Under the terms of the preliminary approval, the newly authorized trust bank will issue and manage the USD1 stablecoin, a digital token pegged one-to-one to the U.S. dollar. The coin currently maintains a market value of roughly $4 billion. Previously, World Liberty relied on third-party custodian BitGo to manage its reserves and issue the token.
“A national trust bank brings USD1 issuance, custody, and reserve management together under OCC supervision, examined on the same standards that have governed banks for generations. We welcome continuous scrutiny from Federal regulators for many years to come.”
Zach Witkoff, World Liberty Trust President and Chairman
The OCC under Comptroller Jonathan Gould has seen a surge in interest from cryptocurrency companies seeking federal charters. Firms such as Circle, Ripple, and Coinbase have also pursued or received preliminary approvals. Proponents argue that a single federal charter allows crypto companies to hold assets nationwide under uniform standards, offering clearer legal backing and enterprise-scale confidence.
The preliminary green light comes with explicit conditions. The firm must maintain at least $20 million in capital, notify regulators of major business plan alterations, and appoint a qualified internal audit manager before securing final operating clearance.
Congressional Backlash and Conflict of Interest Concerns
The regulatory decision immediately triggered sharp condemnation from congressional Democrats, who highlighted the financial entanglement between the sitting president and the regulated entity.
“This is the most brazen act of self-dealing our financial system has ever seen — and Congress cannot allow it to stand.”
Sen. Elizabeth Warren, D-Mass.
In response to the announcement, Warren and other Democratic lawmakers unveiled legislation aimed at barring presidents, vice presidents, members of Congress, and senior government officials from owning or controlling banks. Senate aides indicated that the Banking Committee intends to probe the OCC’s approval process.
Ethics watchdogs echoed those warnings. Donald Sherman, CEO of Citizens for Responsibility and Ethics in Washington, labeled the decision the most egregious example to date of presidential businesses profiting from a federal office.
Foreign Investment Scrutiny and Passivity Agreements
Federal regulators also examined the ownership structure surrounding World Liberty Financial, specifically addressing concerns regarding non-U.S. investors. According to regulatory disclosures, the OCC reviewed passivity agreements submitted by several foreign investors who vowed not to exert operational control over the bank.
Eric Trump signed one such passivity agreement in his capacity as president of a family-affiliated investment vehicle. Earlier in the year, Senate Democrats had requested Treasury oversight into foreign financial links, including a reported stake connected to United Arab Emirates interests.
Representatives for World Liberty have consistently defended the venture, stating that Donald Trump does not manage day-to-day operations and that company leaders do not hold federal government jobs. White House officials have similarly maintained that the president holds no personal involvement in business dealings tied to his official duties, while financial disclosures indicate Trump disclosed nearly $600 million in income from crypto token and equity sales in 2025.
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