Key Highlights
- Senator Elizabeth Warren has urged the OCC to delay World Liberty Financial’s bank charter review.
- The firm, co-founded by President Donald Trump, is seeking approval as a stablecoin-focused trust bank.
- Warren cited conflicts of interest and called for divestment before any regulatory decision.
U.S. Senator Elizabeth Warren is urging federal banking regulators to pause a high-profile crypto bank application tied to President Donald Trump. The request targets World Liberty Financial, a crypto firm co-founded by Trump and his sons, which is seeking approval to operate as a nationally chartered trust bank.
In a letter sent on January 13 to Office of the Comptroller of the Currency (OCC) Comptroller Jonathan Gould, Warren said the review should be halted until Trump fully cuts his financial ties to the company. She warned that allowing the process to move forward now would place the U.S. banking system in uncharted territory, with presidential financial interests overlapping directly with federal oversight.
Senator raises conflict concerns over crypto bank bid
World Liberty Financial applied on January 7 to operate a national trust bank designed for stablecoin services, placing it under the direct supervision of the OCC. Warren said the request forces the regulator into an impossible position, as the agency would be responsible for approving, supervising, and potentially enforcing rules against a company tied directly to the sitting president.
In her letter, Warren criticized the OCC’s earlier refusal to address hypothetical conflicts involving Trump-linked crypto ventures, arguing those concerns are now concrete. She warned that approving the application could effectively make the president responsible for overseeing his own financial company.
Warren also pointed to the GENIUS Act, signed into law in 2025, which designated the OCC as the primary regulator for federally licensed stablecoin issuers. She said the law failed to block elected officials and their families from benefiting financially from such activities, leaving regulators to manage the fallout.
Stablecoin ambitions and growing scrutiny
World Liberty Financial launched in 2024 and later introduced a stablecoin known as USD1. Public statements from Eric Trump have suggested that the Trump family has earned more than $1 billion from crypto-related ventures tied to the company.
If approved, the OCC would not only oversee World Liberty Financial but also issue rules that shape the stablecoin market more broadly. Warren argued this creates a structural conflict, as those rules could directly affect the profitability of a business linked to the president who appoints the controller.
She asked the OCC to commit in writing to pausing the review until Trump and his family fully divest from the company.
Impact on crypto regulation and markets
The letter adds to the ongoing debate over crypto policy in Washington. Warren and other Democrats have pushed for tougher scrutiny of World Liberty Financial, citing foreign ties, stablecoins, and ethics risks.
If approved, the OCC would both supervise World Liberty Financial and help set the rules for the broader stablecoin market.
Market reaction has been mixed. WLFI remains volatile, currently trading at $0.1807, more than 41% below its peak. The token’s market cap sits near $4.83 billion, while daily trading volume has jumped over 57% to about $171 million, according to CoinMarketCap.
More broadly, the dispute underscores a growing tension for regulators as crypto firms push for bank-style approvals while maintaining close links to political power and private interests.
Why the letter matters
Warren’s push highlights how crypto regulation is increasingly tangled with ethics and governance at the top of government. How the OCC responds could show how willing regulators are to draw a line between politics and crypto oversight.
With stablecoins moving closer to the core of the U.S. financial system, the outcome may shape not only one company’s future but also public trust in the independence of crypto oversight.
Also read: WLFI Launches Lending Markets Powered by Dolomite for USD1
