Trump-Linked Crypto Venture Granted Bank Status in Unprecedented Move

The Office of the Comptroller of the Currency has granted World Liberty Trust Co., a crypto business linked to the Trump family, conditional approval to establish a bank charter. This marks the first time in U.S. history that a company owned by the sitting president's family has been granted bank status.

The decision allows the Trump-linked business to issue stablecoin cryptocurrency tied to the U.S. dollar, cutting out the middleman and providing the service directly. The approval was met with criticism from Democratic lawmakers who expressed concerns over potential conflicts of interest.

Ranking Member of the Committee on Banking, Housing and Urban Affairs Sen. Elizabeth Warren, D-Mass., described the decision as 'the most brazen act of self-dealing our financial system has ever seen.' The OCC stated that it acted consistently with its statutory duties and ethical obligations in reviewing the application.

The charter application will not be fully approved until some conditions are met, including increasing the company's capital. World Liberty Financial, the listed sponsor of the conditionally approved trust, has previously relied on a third-party crypto company, BitGo, to provide a stable digital currency.