TLDR
- Senator Elizabeth Warren asked the OCC to halt the bank application linked to WLFI.
- Warren raised concerns over President Trump’s financial stake in the digital asset company.
- She said approving the application could create a conflict of interest for federal regulators.
- The OCC is currently reviewing World Liberty Trust Co.’s request to become a U.S. trust bank.
- WLFI’s trust bank would have the authority to issue the USD1 stablecoin if approved.
U.S. Senator Elizabeth Warren has urged the Office of the Comptroller of the Currency to pause a bank application connected to WLFI. She cited potential conflicts due to President Donald Trump’s financial ties to the digital asset company. The request comes as the Senate Banking Committee prepares to consider a crypto market structure bill.
Warren presses OCC to delay trust bank charter for WLFI
Senator Warren sent a letter Tuesday to OCC Chief Jonathan Gould, a Trump appointee, urging immediate action on the pending bank charter. WLFI’s affiliate, World Liberty Trust Co., seeks to operate as a federally chartered trust bank with stablecoin issuing rights. Warren raised concerns over Trump’s continued ownership stake in WLFI’s digital assets business.
In the letter, Warren wrote, “We have never seen financial conflicts or corruption of this magnitude.” She argued the GENIUS Act failed to prevent such conflicts. Therefore, she called on federal banking regulators to act where legislation fell short.
Warren stated that approving the charter would allow the president to influence rules that benefit his own company. She emphasized that this situation directly connects the president’s policy control with his personal business profits. Her letter also questioned the OCC’s ability to remain impartial during the review process.
Senate Banking Committee prepares for crypto legislation hearing
The Senate Banking Committee is scheduled to hold a hearing Thursday on a draft crypto market structure bill. The draft, shared Monday night, lacks requested provisions on government ethics. Democratic senators had previously pushed for ethics language during discussions.
Warren, the committee’s ranking Democrat, highlighted the gap between ethics concerns and regulatory oversight. She stressed that any delay in addressing conflicts would undermine the bill’s credibility. Her comments reflect an ongoing push to address corporate and political entanglements in crypto regulation.
She said, “It is incumbent for the Senate to address these real and serious conflicts of interest.” The committee’s consideration of amendments may impact whether ethics rules are included. It remains unclear if ethics provisions will be added before a final vote.
Application review raises conflict questions over WLFI ties
World Liberty Trust Co., linked to WLFI, is applying for a national trust bank charter to issue the USD1 stablecoin. The OCC is reviewing the application while questions remain about Trump’s financial involvement. Warren’s letter directly connects the charter’s approval to potential profit for Trump’s firm.
She argued that any approval would raise concerns about oversight by a president who owns part of the applicant’s parent company. Her letter states, “If the application is approved, you would promulgate rules that influence the profitability of the president’s company.” The implication is that the president could shape financial policy affecting his own interests.
Warren’s demand comes as lawmakers face growing pressure to regulate digital assets. She remains focused on separating presidential powers from private business interests. The OCC has not yet commented on the letter or its effect on the WLFI application process.