Trump's Crypto Company Wins Preliminary Approval to Become Bank
Donald Trump's crypto company, World Liberty Financial, is on its way to becoming a bank after receiving preliminary approval from the Office of the Comptroller of the Currency (OCC). This move has been criticized by Senator Elizabeth Warren as a 'clear conflict of interest and corruption.'
The OCC, which is led by Comptroller Jonathan V. Gould who was appointed by Trump, declared that World Liberty Financial could begin the process of establishing itself as a bank in August.
World Liberty Financial's stablecoin, USD1, will be used to hold onto customers' US dollars and reap the interest from Treasury notes, allowing the company to keep all the profits. This is a significant change for the company, which currently has to partner with an actual bank to hold onto customer funds.
Professor Hilary Allen of American University's banking law program noted that before Trump took office, it would have been unlikely for stablecoin companies like World Liberty Financial to become banks due to national security risks and anti-money laundering vulnerabilities. She also pointed out that the OCC's new stance on allowing stablecoin companies to become banks is a result of influence from above.