Original title: US regulator scrutinised over bank licence sought by Trump crypto venture
Original author: Martin Arnold and George Steer, Financial Times
Compiled by: Peggy, BlockBeats
Editor’s Note: When crypto capital and political power converge on the same regulatory track, controversy often proves more penetrating than the technology itself.
The controversy surrounding the application for a US banking license by the Trump family’s crypto venture, World Liberty Financial (WLF), has rapidly evolved from a routine financial approval into a political issue involving conflicts of interest, foreign capital influence, and national security. A $5 billion investment from an Abu Dhabi royal family member, potential AI chip export arrangements, stablecoin business plans, and the President’s own disclosed tens of millions in income have elevated this hearing far beyond industry confines, turning it into a stress test for institutional boundaries and regulatory independence.
The OCC emphasized it would “follow procedures,” while Democratic lawmakers questioned transparency and review standards. At a time when stablecoins increasingly seek “bank-like” pathways, WLF’s application is not just about one company’s compliance journey; it also reflects how the US navigates the balance between digital financial competition, geopolitical capital games, and political ethics.
Below is the original text:
On Thursday, Jonathan Gould faced questioning before the Senate Banking Committee regarding the Trump family’s crypto venture’s application for a banking license.
A US banking regulator official refused to disclose specific information about the application for a US banking license by the Trump family’s crypto venture, which had previously received a $5 billion investment from a member of the Abu Dhabi royal family.
The head of the Office of the Comptroller of the Currency (OCC), which issues federal banking charters, declined at a Senate Banking Committee hearing on Thursday to publicly share details of World Liberty Financial’s (WLF) application as requested by lawmakers and denied that President Donald Trump had exerted any influence over the approval process.
Democratic lawmakers demanded the OCC clarify whether WLF disclosed in its application the sale of a 49% stake to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE National Security Adviser who also controls a vast business empire.
This transaction further fueled external scrutiny: whether the UAE received policy “favors” due to its investment in a Trump family-controlled enterprise, including potential access to US artificial intelligence chips, and whether there is a risk of related technology transfer to China.
WLF denied any connection between the $5 billion investment and chip acquisition arrangements. According to the company’s website, Trump is listed as an “honorary co-founder.” In his latest financial disclosure covering 2024, Trump reported $57.3 million in personal income from WLF.
Leading Democratic progressive Elizabeth Warren challenged OCC head Jonathan Gould during the hearing over WLF’s application, stating that given the Trump family’s stake, the application presented clear conflict-of-interest risks.
WLFI submitted its banking license application in early January through an entity named World Liberty Trust Company. Details of its equity deal with the UAE side, finalized just days before the presidential inauguration, were revealed by media earlier this month.
Warren questioned Gould on whether WLF disclosed in its application that Sheikh Tahnoon had become a “major shareholder of the proposed bank.” Gould responded that he would not comment on any specific application. Warren further warned that if the license were ultimately approved, it would constitute “one of the most shameful corruption scandals in American history.”
In response, Gould stated the OCC would “review all applications according to established procedures” and retorted that the “only political pressure” he felt came from Warren herself.
Democratic Senator Chris Van Hollen also pressed whether the OCC would consider in its review Abu Dhabi investment firm MGX’s $2 billion participation last year, using WLF’s stablecoin, in the acquisition of shares in crypto exchange Binance. Another Democratic member, Andrew Kim, asked if the OCC had enhanced review procedures for applications involving foreign government officials that could impact national security. Gould said he would respond in writing later.
WLF responded that Democrats were “politicizing the matter” and smearing a US private company undergoing rigorous regulatory scrutiny with “baseless allegations.” The company emphasized that World Liberty Trust Company had submitted all required disclosure documents per regulatory requirements. Five companies are currently in line for national bank charter applications at the OCC, with WLF being one; crypto firms Coinbase and Laser Digital are also among the applicants.
If approved, WLF would be able to issue and hold reserves for its USD1 stablecoin itself. USD1 is a crypto token pegged 1:1 to the US dollar; currently, related custody and issuance services are provided by third parties. According to disclosures, WLF will not engage in lending or accept public deposits in the future.
The proposed management includes WLF co-founder Zac Witkoff, whose father is current US Middle East envoy and real estate billionaire Steve Witkoff, and Jeffrey Weiner, CEO of Integrity Automotive Holdings. The latter’s automotive dealership group operates in New York, New Jersey, and Connecticut.
Earlier this week, some founders’ social media accounts were compromised, causing USD1 to briefly depeg. WLF later stated that USD1 was “completely secure” and had regained stability.
