Trump Tied Crypto Firm Gets Conditional Approval to Operate Like a Bank

Regulators appointed by President Donald Trump conditionally approved an application from World Liberty Trust Co., a company partially owned by an entity affiliated with Trump and his family, to receive a national trust bank charter. This approval paves the way for the trust company to issue its USD1 stablecoin, a crypto token valued at $1.

The Office of the Comptroller of the Currency (OCC) issued the conditional approval in a letter on Friday, stating that World Liberty Trust Co. must meet all preopening requirements before receiving official approval. The OCC warned it can modify, suspend, or rescind its current approval status if necessary.

The company's president, Zach Witkoff, celebrated the decision with a social media post, stating 'Rigorous oversight, institutional controls and clear accountability are how stablecoins become trusted financial infrastructure.'

Senator Elizabeth Warren (D-Mass.) has expressed concern about conflicts of interest, labeling the approval as 'the most brazen act of self-dealing our financial system has ever seen.' She and other Democratic Senators have proposed a bill to prevent such approvals in the future.