Trump Agrees to Step Back on World Liberty Crypto Bank Bid
Eric Trump has agreed to limit his involvement in World Liberty Financial's proposed national trust bank. The decision comes as the company works through the federal approval process for a charter that would allow it to hold USD1, its dollar-backed stablecoin, and nearly $4 billion of reserves.
The commitment is part of separate agreements signed by Trump, co-founder Zak Folkman, and Emirati investor Hamad Khalfan Ali Matar Alshamsi. These arrangements are known as passivity commitments, aimed at ensuring that the investors do not control the trust bank's management decisions.
World Liberty has stated its intention to cooperate fully with federal regulators and adhere to all applicable laws and regulations. The company expects to remain under federal oversight for years to come.