Trump family bank bid sparks fury over ‘historic’ conflicts

Eric Trump and Donald Trump Jr

The Trump family’s cryptocurrency empire has moved closer to gaining a US banking charter, triggering fierce criticism over potential conflicts of interest. A preliminary approval could eventually allow World Liberty Financial’s trust company to operate as a federally chartered national trust bank.

Trump crypto venture clears its first major hurdle

The Office of the Comptroller of the Currency has granted preliminary conditional approval for World Liberty Trust Company, according to the Wall Street Journal. If final approval is secured, the company could issue, redeem and safeguard its dollar-backed stablecoin.

The token, launched last year, has a reported market value of around $4bn. The proposed institution would not operate like a conventional bank, meaning it generally could not take deposits or make loans.

Warren attacks scale of potential conflicts

The development has drawn an explosive response from Senator Elizabeth Warren, who accused the Trump administration of presiding over financial conflicts on an unprecedented scale.

Donald Trump and his two sons launched World Liberty in late 2024, while Trump has reported $1.4bn in earnings from his memecoin and other crypto ventures. Those interests have become a major obstacle for the bipartisan Clarity Act, which aims to establish a comprehensive regulatory framework for digital assets.

White House insists there is no conflict

The White House has repeatedly defended the president’s business interests, saying neither Trump nor his family has engaged in conflicts of interest and will not do so.

The political pressure could intensify if World Liberty receives final approval, putting Trump’s personal financial interests directly alongside the administration’s efforts to reshape US cryptocurrency regulation.

Zach Witkoff

Company says scrutiny is exactly what it wants

World Liberty Trust is led by Zach Witkoff, son of Trump’s Middle East envoy Steve Witkoff. The company insists its application has undergone exceptionally rigorous scrutiny.

Witkoff said the firm accepted the obligations and continuing oversight that come with a national charter. He argued that choosing federal supervision was itself evidence the company was not seeking lighter regulation.

The decision now moves into a more consequential phase: whether regulators will turn the preliminary green light into a full banking charter while Trump remains both president and a major beneficiary of the crypto boom.

Horror as Trump family closer to launching bank: 'Never seen corruption of this magnitude'