World Liberty Financial (WLFI), a company associated with the Trump family, has obtained conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a trust bank in the United States, according to Bloomberg.
The review process for the application took seven months. To finalize the approval, the firm must hire an external auditor and maintain a specified capital level. Three WLFI investors, including one of the president's sons, have agreed to limit their influence over the future bank's management.
It was noted by reporters that during the first 19 months of Donald Trump's second presidential term, the regulator approved 22 banking license applications, surpassing the total for the previous five years combined.
Source: Bloomberg.Most of the new licenses granted were awarded to fintech companies and firms dealing with digital assets, including Circle and Coinbase.
Earlier in August, WLFI representatives stated that the federal charter would enhance regulatory oversight of the project and facilitate the use of the USD1 stablecoin. According to the company, the future bank will hold assets that back the stablecoin.
The project's connection to President Donald Trump has raised concerns among Democrats. Sources for Bloomberg suggest that the "stablecoin" could be used as a tool to garner favor with the White House amid a more lenient regulatory approach.
Aaron Klein, a senior fellow at the Brookings Institution, expressed that "creating an illusion that stablecoins are government-backed raises serious concerns."
In response to the criticism, company representative David Waxman emphasized that the firm is not evading oversight but is instead subjecting itself to ongoing OCC regulation. The project must still comply with anti-money laundering and consumer protection requirements, and weekly reports on reserves and USD1 transactions will undergo independent audits.
Additionally, a Reuters poll revealed that 63% of Americans considered Trump's earnings from cryptocurrency inappropriate.