Trump Crypto Firm World Liberty Financial Gets Preliminary Approval to Become Bank

World Liberty Financial, the cryptocurrency company launched by President Donald Trump and his sons, has received preliminary conditional approval from federal banking regulators to establish a national trust bank.

The approval from the Office of the Comptroller of the Currency is a major step for the company, although final approval depends on meeting additional conditions.

The proposed bank would not be permitted to take deposits or make loans. However, the charter would allow World Liberty to handle certain functions involving USD1, its dollar-backed stablecoin, which has more than $4 billion in circulation, according to the company.

World Liberty Financial was launched by Trump and his sons in 2024, shortly before Trump won the presidential election. Trump later appointed several cryptocurrency-friendly regulators to federal agencies.

The preliminary approval has drawn criticism from ethics watchdogs and Democratic lawmakers, who argue the arrangement creates potential conflicts because the president and his family have financial interests in the company.

Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee, called the decision an unprecedented example of potential self-dealing. Warren and other Senate Democrats said they plan to introduce legislation that would prevent federal regulators from approving bank applications involving businesses owned or controlled by certain federal officials and their families.

The White House rejected the criticism, saying Trump's investments are held in discretionary accounts managed by independent financial institutions and arguing there are no conflicts of interest.

World Liberty defended the approval, saying the bank charter would place the company under continuing regulatory oversight.

The development comes as Congress considers broader cryptocurrency legislation, including the stalled Clarity Act, which would establish a federal regulatory framework for digital assets. Critics of Trump's cryptocurrency holdings have previously pushed for ethics restrictions as part of negotiations over the legislation.

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