Treasury Grants Charter to Crypto-Focused Entity with Ties to Trump Family
The US Treasury Department's Office of the Comptroller of the Currency (OCC) has granted a de novo banking charter to World Liberty Financial, a cryptocurrency-focused financial entity co-founded by Alex and Zach Witkoff, sons of billionaire Steve Witkoff, a Trump advisor.
The charter was issued on August 14, 2026, sparking controversy due to the company's ties to the Trump family. The OCC stressed that its primary goal is to develop a robust pipeline of de novo banking institutions, crucial for a healthy national banking system.
World Liberty Financial's involvement in cryptocurrency markets raises concerns about higher risk exposure, similar to Silicon Valley Bank (SVB), which collapsed after becoming reliant on tech sector clients. The OCC official noted that cautious regulations since the 2008 financial crisis have discouraged de novo charter applications, with fewer than four applicants per year between 2011 and 2014.
Director of research at the American Economic Liberties Project, Matt Stoller, warned that 'this level of corruption always ends in tears.' The decision is likely to draw criticism from lawmakers and financial watchdogs due to the company's ties to the Trump family and potential conflicts of interest.