The World Liberty Financial (WLFI) project, linked to the family of the U.S. President, has received preliminary approval from the OCC (Office of the Comptroller of the Currency) to establish a trust bank. This decision, which took seven months of review, marks an important step for the company, but simultaneously intensifies criticism of the administration.
The licensing conditions are standard: final approval will require hiring an independent auditor and maintaining a minimum level of capital. Notably, three key investors, including one of the President's sons, have already agreed to voluntarily limit their influence over the management of the future structure — an obvious attempt to mitigate reputational risks.
The boom in banking licenses in the Trump era
The broader context is noteworthy. During the first 19 months of Trump's second term, the OCC approved 22 banking license applications — more than in the previous five years. The lion's share of new permits went to fintech companies and crypto firms, including Circle and Coinbase. Clearly, Washington's regulatory policy has drastically shifted course toward innovation, but there is a downside to this as well.
WLFI itself emphasizes that the federal charter, on the contrary, will strengthen oversight and help scale the use of the USD1 stablecoin. The bank will hold the reserves backing this asset, and weekly reports on them will be subject to independent audit. Company representative David Waxman counters the accusations: the project is not evading control but moving under the constant supervision of the OCC.
Political undertones and risks
However, Democrats and some experts see a conflict of interest here. Critics fear that the "stablecoin" could become a tool for influencing the White House under conditions of lenient regulation. Aaron Klein, a senior fellow at the Brookings Institution, expresses concern: "Creating the illusion among people that stablecoins are backed by the state raises real concerns."
These concerns are not unfounded. Polls show that 63% of Americans consider Trump's income from cryptocurrencies inappropriate. In my analysis, such initiatives, even with formal compliance with all norms, inevitably undermine trust in regulatory neutrality. The market needs not only transparency but also a visible distance between politics and business; otherwise, trust in institutions will continue to erode.