Trump Family Lands Bank Charter for Crypto Business
The Trump family has been granted a bank charter by the Office of the Comptroller of the Currency (OCC), which is part of the Treasury Department. This decision allows World Liberty Financial, a company with significant ownership interest from the Trump family, to issue its USD1 stablecoin and obtain a master account at the Federal Reserve.
A master account would enable WLF's stablecoin business to transfer funds electronically through the Federal Reserve system, reducing costs for the company. However, this decision raises concerns about conflicts of interest and potential risks to the US economy.
The OCC is criticized for its decision, as it grants a bank charter to a firm that makes Trump money, while also acting as the supposed supervisor of that bank. This creates conditions for crypto firms to maneuver for a federal bailout if their businesses start to fail.
The Federal Reserve has previously recognized the risk of granting master accounts to entities that create undue risks to the economy, including those involved in money laundering and terrorism financing.